How to Renew Your Mortgage 101

When you first got your mortgage, you picked a term — maybe 5 years, maybe shorter or longer. But here’s the thing: when that term ends, your mortgage probably won’t be fully paid off. That’s where renewal comes in. In Canada, most homeowners go through several mortgage renewals before finally being mortgage-free. And if you play your cards right, a renewal is a great opportunity to get a better deal.

What is a Mortgage Renewal?

A mortgage renewal is simply the process of signing on for a new term once your current mortgage term expires. You can stay with your current lender — or switch to a new one if someone else is offering better rates, more flexibility, or fewer fees. Every time you renew, you can renegotiate your interest rate, term length, and payment schedule.

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Why Mortgage Renewal Matters

Think of renewal as a fresh start. Maybe rates have dropped. Maybe your financial situation has changed. Maybe another lender is offering perks or lower penalties. If you just sign the renewal letter without shopping around, you could miss out on thousands in savings.

Also, if you stick with your current lender, you won’t have to requalify — no paperwork, no stress. But switching lenders does require reapplying and providing updated documents, similar to when you first got your mortgage.

Start Preparing Before Renewal Day

You’ll get a renewal letter at least 21 business days before your term ends. But don’t wait until then. Most lenders let you renew early — usually within 90 to 180 days before maturity — without penalty. That’s your window to:

• Review your current mortgage
• Check if your goals or finances have changed
• Shop around for rates
• Think about switching lenders if it makes sense

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Understand Your Current Terms

Before shopping around, read your current mortgage agreement. What was your interest rate? What kind of penalties would you pay if you broke it early? Did you have good prepayment options? This will give you a baseline to compare new offers against.

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Shopping Around for a New Term

The mortgage market can change a lot in 5 years. Rates, lender rules, even your own financial priorities might be very different now. So take the time to:

• Get rate quotes from different lenders
• Ask about features like prepayment options or portability
• Consider any fees if you decide to switch
• Ask for rate holds in writing (you can use this as leverage to negotiate with your current lender)

Even if another lender’s rate isn’t much lower, their terms might be more flexible. That can matter a lot if you plan to move, refinance, or pay off early.

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Documents You’ll Need (if Switching)

Renewing with the same lender? You usually don’t need documents — just sign and return the form.
Switching lenders? Then you’ll likely need:

• Recent pay stubs or employment letters
• T4s and NOAs (Notice of Assessment)
• Proof of homeownership (like a property tax bill)
• Your renewal statement

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Don’t Forget to Negotiate

Lenders know that renewals are their chance to keep you as a customer — or lose you. That’s why it’s always worth negotiating. Ask if they can beat a competitor’s rate. Ask for better terms. If you’ve got a solid payment history, that’s bargaining power.
And don’t accept the first renewal offer — it’s often not their best.

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Time to Make a Decision

After shopping and comparing, it’s time to choose. You’ll either:

• Sign a new term with your current lender
• Or apply with a new lender and transfer your mortgage over

If you stay with your lender, the process is usually quick and simple. If you switch, it’s a bit more paperwork but might be worth it if the new deal is significantly better.

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Frequently Asked Questions

When should I start thinking about renewal?
Ideally, 120 days before your term ends. That gives you time to plan, compare, and negotiate.
Can I renew early without penalties?
Yes — most lenders let you renew 90 to 180 days early without penalties. Check your mortgage terms.
What’s the difference between renewal and refinance?
Renewal = same balance, new term. Refinance = new mortgage, possibly more money or different terms.
Can I switch lenders at renewal?
Absolutely — and without penalty, because your term is ending. You just need to requalify and provide documents.

Final Thoughts

Every mortgage comes with an end date — and that means every homeowner gets a shot at renewal. Whether you stay put or switch lenders, this is your chance to save money, rethink your goals, and get a mortgage that actually works for your life right now.
Don’t just auto-renew. Explore. Compare. Negotiate. You’ve earned it.

🔁 Time to Renew Your Mortgage?
Mortgage renewals are a chance to negotiate a better rate, switch lenders, or adjust your payments — but only if you do it right. Our experts can walk you through your renewal options and help you avoid costly mistakes. ✅ Talk to a Renewal Expert Now