Don't Just Sign. Strategize. Your Mortgage Renewal is an Opportunity to Save Thousands.
When that mortgage renewal letter arrives from your bank, their goal is simple: to have you sign it quickly. But their first offer is rarely their best offer. Your mortgage renewal is a critical moment to reassess your financial goals and ensure you’re not overpaying. Loyalty to one bank is rarely rewarded with the best rate; smart financial planning is.
Renewal vs. Switch vs. Refinance: Know Your Options
Renewal
Sticking with your current lender but signing a new contract for a new term and interest rate.
Switch (or Transfer)
Moving your existing mortgage balance to a new lender at the end of your term to get a better rate and more favourable terms. This is where the biggest savings are often found.
Refinance
Breaking your current mortgage (or changing it at renewal) to borrow more money against your home’s equity. This is for when your needs have changed, like funding a renovation.
The Switching Process: A Simple Path to Savings
- Start Early: We should begin exploring your options 4-6 months before your renewal date. This gives us ample time to shop the market and lock in a great rate.
- Gather Your Documents: We'll need a copy of your current mortgage statement and a recent property tax bill.
- Find the Best Deal & Seamless Transition: I'll compare offers from over 100 lenders, and once approved, your new lender pays off your old mortgage. The process is designed to be seamless.
What About the Costs to Switch?
While there can be fees associated with switching (like a discharge fee from your old lender and legal fees), in many cases, the new lender will cover some or all of these costs to earn your business. Most importantly, when you switch at your renewal date, you avoid the costly prepayment penalties that come with breaking a mortgage mid-term.
Major Update: The Stress Test Exemption
As of recent changes, insured mortgage holders can now switch to a new lender at renewal without having to pass the mortgage stress test again. This is a game-changing rule that makes it significantly easier for many homeowners to qualify for a better rate at a different institution, unlocking more competition and bigger savings for you.
Is your renewal date approaching?
As of recent changes, insured mortgage holders can now switch to a new lender at renewal without having to pass the mortgage stress test again. This is a game-changing rule that makes it significantly easier for many homeowners to qualify for a better rate at a different institution, unlocking more competition and bigger savings for you.