Renewal & Switch

Why the renewal letter is rarely the best offer

The rate printed on a renewal letter is a posted or near-posted rate, and it is almost always higher than what the same lender offers a new client. Lenders price on the probability that you will not shop, and most borrowers sign without asking.

On a typical Ontario mortgage balance, even a modest rate improvement compounds into thousands of dollars across a five-year term. That is why we start the conversation about four months before maturity, when rate holds become available.

Renew, switch, or refinance

Renewing means staying with your current lender on new terms. It is the simplest option, requires no new approval, and is the right answer when your lender matches the market.

Switching moves the same balance to a different lender at maturity. There is a full application and the new lender usually covers or discounts the legal and appraisal costs, but no penalty applies because the term has ended.

Refinancing changes the amount, not just the lender — taking equity out, consolidating debt or changing the amortization. It requires a full qualification and new legal work, and is worth it when you need more than a better rate.

What to fix before you shop

A switch is a new approval, so income and credit are reviewed again. If your work situation changed, or the credit file has recent damage, that is worth knowing before we apply rather than after a decline.

Renewing in place with your existing lender does not require requalification, which makes it the safe harbour when circumstances have changed. Knowing which of the two situations you are in is most of the value we add here.

• Start four months out, while rate holds are available
• Check the penalty if you want to move before maturity
• Consider shortening the amortization if cash flow allows
• Revisit fixed versus variable — the right answer may have changed

How we run your renewal

We pull the terms of your existing mortgage, price it against the full lender panel, and show you the total cost of each option over the term — not just the rate, but the fees, the penalty structure and the prepayment privileges.

If your current lender is competitive, we will tell you to stay and help you negotiate. If it is not, we handle the switch paperwork end to end so the only thing you do is sign.