Why Your Renewal Deserves More Than a Signature
The Bank of Canada raised rates sharply in 2022 and 2023, and if your mortgage is renewing now, you're feeling it. Your payment is about to jump — maybe by a lot. The good news? You have more control than you think.
Being proactive is your best move here. This guide will walk you through what happens at renewal, what your lender isn't telling you, and how to keep more of your money where it belongs.
What Actually Happens at Renewal
When your mortgage term ends, your mortgage doesn't disappear — you still owe what you owe. You'll renew for another term, same lender or different one, until the balance is paid off.
By law, your lender has to send a renewal notice 21 days before your term expires. But most lenders reach out much earlier — usually within the last 120 days of your current term. During that window, you can renew early without penalty.
The Letter That Costs You Money
Somewhere in that 120-day window, your lender will send you an early renewal offer. It'll include a new rate — typically about 0.75% below their posted rate — and a term length that matches your last one. Sign the letter, send it back, and you're renewed. Easy.
Too easy, usually. That offer is designed for convenience, not savings. Your lender is betting you won't shop around. And most of the time, that bet pays off — for them.
The rate in that letter is almost never the best rate you can get. Even if your lender gave you a great deal last time, the market has changed. Other lenders are competing for your business right now, and they're willing to offer better terms to earn it.
What Shopping Around Actually Saves You
Let's say you own a home worth $350,000 with a $280,000 mortgage and 25 years left to pay it down. Your 5-year fixed term is ending, and your lender offers you 5.74% for another five years. If you take it, you'll pay $75,747 in interest over that term. Your monthly payment: $1,723.
Now imagine a mortgage broker finds you 5.09% with a different lender. Over the same five years, you'd pay $66,955 in interest — a difference of $8,792. Your monthly payment drops to $1,616.
That's real money. And all it took was a phone call.
Switching Lenders Is Easier Than You Think
You're not locked into your current lender. At renewal, you can move to another one without penalty, and the new lender usually covers the legal costs. Don't let convenience cost you thousands. Shop around, or let us do it for you.
Stretching Out How Fast You Pay It Down
Another way to ease the payment shock: extend your amortization. That's the total number of years it takes to pay off your mortgage. Spread the balance over more time, and your monthly payment drops — sometimes by hundreds of dollars.
It's not the right move for everyone, but if cash flow is tight, it's worth looking at.
When Extending Makes Sense
If you have an insured mortgage — meaning you put down less than 20% or bought default insurance — extending your amortization might mean losing access to lower insured rates. You'll want to compare the monthly savings against the rate increase.
If you're on your second or third renewal (10 or 15 years in with standard five-year terms), a longer amortization can bring your payment way down. You might see a small rate bump, but the monthly relief can be significant.
If you have an uninsured mortgage — 20% equity or more — you may still qualify for insurable rates even if you extend to 25 years. Going all the way to 30 years can drop your payment even further, though you'll pay more interest over time.
What the Numbers Look Like
Say you have a $500,000 mortgage with 20 years left on your original 25-year term. At 4.99% on an uninsured five-year term, you're paying close to $3,280 a month. Stretch that to a 30-year term instead, and your payment could drop to nearly $2,660. That's over $600 a month back in your budget.
Not Renewing Yet? You Might Still Be Able to Extend
If your renewal is still a ways off but you want the breathing room of a longer amortization, you could break your mortgage early. Yes, there's a penalty — usually three months' interest on a variable-rate mortgage, or an Interest Rate Differential calculation on a fixed-rate mortgage, which can be steeper. But if the monthly savings are big enough, the math might still work in your favour.
What's Right for You Depends on Your Goals
Switching lenders for a better rate, extending your amortization for lower payments, or some combination of both — the best move depends on where you are and where you're headed. That's where a conversation helps. We'll walk through your options and show you what each one actually costs (or saves) over time.
Let's Look at Your Renewal Together
We ask the questions your lender won't. We have access to dozens of lenders and hundreds of products, and we're not tied to any of them. Our job is to find the strategy that works for you — not the one that's easiest for a bank.
Click here to book a call if you're within 120 days of renewal. Fifteen minutes could save you thousands. We'll tell you if your lender's offer is solid, or if there's something better out there. We might also be able to restructure things to bring your payment down.
Never Miss Your Renewal Date Again
Life gets busy. Renewal dates slip by. We built a reminder service so that doesn't happen to you.
Here's how it works: Fill out a short form with your contact info and your mortgage term end date. We'll send you a reminder 120 days before renewal — plenty of time to shop around and reassess your needs. Then you can relax, knowing you won't accidentally sleepwalk into a bad deal.
Where rates are today
Reading about rates is one thing—seeing today's is another. See today's live mortgage rates, updated every morning from every lender we work with, along with our forecast on where fixed and variable are heading next and a live fixed-vs-variable breakdown. If you're closing in the next 120 days, that's also where you'll find the free rate hold.
