Mortgage Renewal: Why “Just Signing the Letter” Can Cost You

Mortgage renewal often feels like a non-event. A letter shows up. A rate is offered. You sign it. Done.

Except… that’s usually the most expensive way to renew a mortgage.

If your mortgage is coming up for renewal, here’s what you should actually know before agreeing to the first offer.

1. Your Lender’s Renewal Offer Is a Starting Point — Not a Favour

When your current lender sends a renewal offer, it’s designed to be convenient, not competitive.

Most lenders:

• Don’t re-qualify you

• Don’t ask about your goals

• Don’t automatically offer their best rates or terms

They’re betting on one thing: inertia.

Even a slightly higher rate can cost tens of thousands of dollars over the next term — and many borrowers never realize it.

2. Renewal Is Your Chance to Fix What Isn’t Working

Your mortgage shouldn’t be on autopilot.

At renewal, you can:

• Change lenders

• Switch between fixed and variable

• Adjust amortization

• Improve prepayment options

• Reduce restrictive penalties

This is the moment to ask:
Does this mortgage still fit my life?

Job changes, income growth, family shifts, or plans to move all matter — and none of that is addressed in a standard renewal letter.

3. You Don’t Always Need to Re-Qualify

One of the biggest myths about switching lenders at renewal is that it’s complicated.

Often:

• No income verification is required

• No property appraisal is needed

• Legal costs may be covered

In many cases, changing lenders is smoother than people expect — especially when it’s handled properly.

4. Timing Matters More Than Most People Realize

You don’t need to wait until your renewal date.

Mortgage planning can start:

• Up to 120 days before maturity

• Earlier if rates are moving or your situation has changed

Waiting until the last minute limits options. Planning ahead creates leverage.

Final Thoughts

Mortgage renewal isn’t just paperwork — it’s a financial decision that deserves attention.

A quick review can confirm whether your current mortgage still makes sense or uncover better options that align with your goals. Either way, informed decisions beat automatic ones every time.

If your renewal is coming up and you want clarity before committing, a short conversation now can prevent long-term regret later.