If your mortgage term is coming up for renewal, you’re not alone — thousands of Canadian homeowners face this same decision every month. And while it might seem like a simple “sign and renew” situation, taking a bit of time to review your options can make a big difference. A little research and negotiation now could save you thousands of dollars in interest over the life of your mortgage.
When your term ends (usually every 1 to 5 years), you’ll need to renew your mortgage — either with your current lender or with a new one. Most people stick with their existing lender for convenience, but that can sometimes mean missing out on better rates or terms. You’ll usually get a renewal statement a few months before your current term expires. It outlines your remaining balance, new rate, and payment schedule. That’s your cue to take a closer look and decide if it’s time to negotiate or shop around.
Here’s what I recommend: start by reviewing your current mortgage details. Are you comfortable with your payment amount and frequency? Would you like to pay off your mortgage faster, or do you need a bit more flexibility in your budget right now? Once you know what you want, compare renewal rates from different lenders — even a small rate difference can translate to thousands in savings.
If another lender offers a better rate, you can either switch or use that information to negotiate with your current one. Many lenders are open to matching or beating competitor offers. When you’ve chosen your new term and rate, you’ll simply sign the updated documents — typically online or through your lawyer.
A great way to see your potential savings is to use a mortgage renewal calculator. It lets you play around with different rates, terms, and payment schedules so you can see how those changes would impact your total costs over time.
Mortgage renewal rates change with market conditions, so if rates have gone up since your last term, your payments might increase. However, by starting early — ideally three to six months before your renewal — you give yourself time to shop around and lock in a great rate before it’s too late.
Here are a few renewal tips that I’ve seen work well for clients:
Start early: Don’t wait until your renewal letter arrives — begin comparing options in advance.
Consider your payment frequency: Bi-weekly payments can help you pay off your mortgage faster and reduce total interest.
Negotiate with confidence: If you’ve received competing offers, show them to your lender — it could help you secure a lower rate.
It’s also important to renew on time. If you don’t, your lender could automatically roll your mortgage into a higher “default” rate — increasing your monthly payments and overall costs. In rare cases, missing your renewal altogether could even trigger foreclosure proceedings, so it’s definitely something to prioritize.
Renewal time is also a great opportunity to re-evaluate your financial goals. Maybe you’d like to shorten your amortization to become mortgage-free sooner, or extend it slightly to lower your payments if cash flow is tight. You can also adjust your term length or payment schedule based on your future plans. Just keep in mind that stretching your amortization might mean paying more interest over time.
If you’re thinking of switching lenders, it’s worth noting that you may need to re-qualify, update your financial documents, and pay small fees like appraisal or discharge costs. The good news? Many lenders will actually cover some or all of those fees to earn your business — so it never hurts to ask. And if your mortgage is insured, let your new lender know; they can use your existing insurance certificate, saving you from paying for new coverage.
The key takeaway: start early, compare rates, and don’t be afraid to negotiate. Your mortgage renewal is more than just paperwork — it’s an opportunity to align your financing with your current goals and possibly save a substantial amount of money.
If you’re unsure whether it’s best to renew, refinance, or switch lenders, I’d be happy to connect you with trusted local mortgage experts who can help you review your options and secure the best possible rate for your situation.