Common Mistakes When Renewing Your Mortgage: 6 Expert Tips

Your mortgage renewal is the perfect chance to re-evaluate your loan — but too many borrowers miss it. From skipping the rate shop to ignoring prepayment options, we’ll walk you through the top mistakes and what to do instead.

Understanding Mortgage Renewal

Most Canadian homeowners will renew their mortgage multiple times over the life of their loan. While it’s a routine part of homeownership, many borrowers don’t realize how much money and stress they could save by preparing for it in advance.
A mortgage renewal happens when your mortgage term comes to an end. At this point, you must either renew with your current lender or switch to a new one. It’s your opportunity to renegotiate the interest rate, amortization period, payment frequency, and more.

Common Mortgage Renewal Mistakes

Even though renewals are straightforward, there are common traps many people fall into:

• Automatically renewing with your current lender without exploring better offers.
• Accepting the first offer from your lender instead of negotiating.
• Waiting until the last minute to start shopping around.
• Ignoring other terms of the contract like amortization or payment schedule.

These oversights can cost you thousands over time.

6 Expert Tips for a Smoother Renewal

1. Start Early

Don’t wait until the final few weeks to think about your renewal. Most lenders allow you to renew as early as 120 to 150 days before your term ends. Starting early gives you the leverage to shop around and even secure a rate hold in a rising rate environment.

2. Shop Around for Better Rates

Loyalty doesn’t always pay. Lenders often reserve their best rates for new clients. Compare offers from multiple institutions or work with a mortgage broker to ensure you’re getting the best deal.

3. Reassess Your Amortization Period

Your renewal is a great time to revisit your amortization schedule. Could you afford higher payments to shorten your amortization and save on interest? Or do you need a longer term to manage monthly cash flow?

4. Revisit Your Payment Frequency

Changing your payment frequency from monthly to bi-weekly or weekly can accelerate how quickly you pay down your mortgage and reduce total interest. It’s a small change with big long-term impact.

5. Think About Life Changes

If you’re planning big life changes like starting a family, changing jobs, or downsizing, factor that into your renewal decision. You may need more flexibility in your mortgage or features like prepayment privileges.

6. Get Expert Advice

Even if you feel confident, speaking to a mortgage advisor or broker can reveal options and savings you might have missed. Expert advice is especially valuable when comparing fixed vs. variable rates or deciding whether to switch lenders.

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Navigating Your Renewal Process

A successful renewal isn’t just about getting a good rate. It’s about aligning your mortgage with your financial goals. Start with a checklist: review your current agreement, assess your finances, explore market rates, and talk to a professional.
Avoid procrastination, ask questions, and never feel pressured to sign until you’re confident.

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Frequently Asked Questions

What is a mortgage renewal?
It’s the process of renewing your mortgage at the end of a term (typically 5 years), usually with new terms and an updated interest rate.
Can I switch lenders during a renewal?
Yes, switching lenders is common. Just remember that some administrative or legal fees may apply, though many lenders will cover them to win your business.
Should I choose fixed or variable at renewal?
It depends on the market and your risk tolerance. A broker can help you weigh the pros and cons based on current economic conditions.

Final Thoughts

Mortgage renewals are more than a formality — they’re a financial opportunity. By avoiding common mistakes and following expert tips, you can save money, reduce stress, and tailor your mortgage to better fit your current lifestyle.
At Mortgage.Expert, our advisors help you evaluate every renewal option to make sure you’re not leaving money on the table.

Why Choose Mortgage.Expert
From personalized rate shopping to renewal negotiation support, our commission-free experts ensure your mortgage always works in your favour. Let us help you renew smart — and stress-free.

Renewing Your Mortgage? Read This First

Many Canadians renew their mortgage without shopping around — and leave money on the table. Learn the 6 most common renewal mistakes and how to negotiate smarter for better terms.
Avoid These 6 Renewal Mistakes Now