Many Canadian mortgage holders renew without asking any questions—often ending up with a higher rate or a mortgage product that doesn’t meet their needs. Don’t fall into this trap. Take a careful look at your current situation, put a plan in place, and let lenders compete for your business to ensure you get the best mortgage possible. Here’s what you need to consider before renewing your mortgage.

1. Put a Plan in Place

Don’t wait until the last minute to act on your mortgage renewal. Start reassessing your needs well in advance of your renewal date to secure the best rate and product for you and your family. The Canadian Real Estate Association (CREA) suggests reviewing your needs four months before your renewal date. This includes:

• Researching current market trends, interest rates, and lenders’ products.

• Educating yourself on all available options, including reverse mortgages.

• Assessing your financial situation—savings goals, children’s education, and debt consolidation.

2. Do Your Research

Leading up to your renewal date, take time to compare products, features, and interest rates across multiple lenders. Check interest rate trends, and shop around for better deals. Resources like the Financial Consumer Agency of Canada website offer up-to-date information and FAQs on mortgage renewals. Your REALTOR® can also provide valuable insights on what to consider when renewing.

3. Request a Lower Rate

Negotiating with your current lender for a lower interest rate is often overlooked. Even if your renewal letter suggests a higher rate, you may qualify for a discount. Mention any offers you’ve received from competing banks or mortgage brokers—this puts pressure on your lender to give you the best deal.

4. Consider This a Fresh Start

Much may have changed since your original mortgage. Perhaps you or your spouse switched careers, your children moved out, or interest rates have dropped significantly. Don’t feel obligated to accept the same mortgage terms—use your renewal as a chance to reassess.

5. Expand Your Horizon

Lenders constantly offer new products and features. You could benefit from:

• Improved pre-payment options

• Cash-back programs

• Accelerated payment schedules

• Investment opportunities

If you’re considering building instead of buying, investigate construction mortgage loans to fund your dream home.

6. You Don’t Have to Renew with the Same Lender

Your current lender isn’t your only option. If another bank or broker offers a better rate or improved terms, you’re free to switch. Start exploring your options well in advance, so you don’t miss out on the best deal.

7. You Can Refinance

Renewal time is an opportunity to refinance and access your home equity. Whether it’s for renovations, consolidating debt, funding education, or investing, refinancing at renewal can save you thousands. There are no early-payment penalties when your mortgage term ends, making this the perfect time to take action.

8. Don’t Get Intimidated by Fees

Switching lenders may involve some fees, such as:

• New lender set-up fees (discharge and registration)

• Transfer or reassignment fees

• Appraisal fees to confirm your home’s value

Other considerations include mortgage loan insurance premiums or collateral charges. Ask your new lender if they’ll cover some or all of the discharge fees—it could save you money. Even with fees, switching can be worthwhile compared to long-term interest savings.

9. Switching Lenders Equals More Work

Keep in mind that switching lenders means reapplying for a mortgage. You’ll need to prove income, undergo a credit check, and complete additional paperwork. Weigh the benefits carefully before deciding to move your mortgage.

10. Aim to Keep Your Payments the Same

If your current monthly payment is manageable, consider keeping it the same after renewal. With a lower interest rate, this strategy helps you pay off your mortgage faster while boosting your financial security.

Bottom line: Don’t wait for your renewal letter and don’t let your lender automatically renew your mortgage. Being proactive and taking action months in advance can save you thousands of dollars and ensure your mortgage suits your life today—not just when you first signed it.