Renewal is the one moment you can move lenders for free, because the term has ended and there is no penalty. Most people give that up by signing the letter that arrived in the mail.
No penaltyTo switch at maturity
120 daysAhead of maturity
Posted rateIf you do nothing
When to start a renewal
- Your mortgage matures in the next six months.
- A renewal letter arrived and you want to know whether it is competitive.
- Your financial position has improved and you may now qualify at a better lender.
- You are in an alternative or B lender product and want to move back to prime.
- You want to change the amortization, the payment frequency or the term.
What the letter does not tell you
- Renewal offers are frequently priced above what the same lender will give a new client.
- Start 120 days out. Rate holds run 90 to 120 days, which protects you if rates rise before maturity.
- Compare the whole offer: rate, term, prepayment privileges and the penalty formula, not only the number on the letter.
- Ask your current lender to match a better offer. Sometimes they will, and you should see both numbers before deciding.
- Check whether your existing mortgage is a collateral charge, which can add legal fees to switch.
- Do nothing and most mortgages auto-renew at a posted rate. It is the most expensive outcome and it happens by default.
- Adding money makes it a refinance rather than a switch, with a full application, an appraisal and legal costs.
Documents to gather
- The renewal offer your current lender sent
- Current mortgage statement showing balance, rate and maturity date
- Government photo ID for each applicant
- Income confirmation for each applicant
- Property tax bill and, for condos, the monthly maintenance fee
- Home insurance policy details
How a switch runs
- 01 Send us the renewal letterRate, term and maturity date. We tell you within a day whether the offer is competitive.
- 02 One market comparisonWe price the whole market against the offer and hold a rate while you decide.
- 03 Match or moveWe take the better number back to your lender, or arrange the switch. You see both figures.
- 04 Signed before maturityWe clear conditions and fund ahead of the maturity date so nothing auto-renews.
Got a renewal letter?
Start the application, or call 647-505-1096 and talk it through first.
Questions we get asked
- Does it cost anything to switch lenders at renewal?
- Usually very little. There is no penalty because the term has ended, and many lenders cover the legal and appraisal costs to win the file. A collateral charge on the existing mortgage can add legal fees.
- What happens if I do nothing?
- Most mortgages automatically renew, often into a short term at a posted rate well above what you could have negotiated. It is the most expensive possible outcome and it happens by default.
- How early should I start?
- Four months before maturity. That lets us hold a rate and gives time to complete a switch without rushing.
- Can I add money to the mortgage at renewal?
- Adding funds makes it a refinance rather than a straight switch, which means a full application, an appraisal and legal costs. Still often worth it, but it is a different transaction.