Office 289-505-0631  ·  Direct 647-291-7116 Rajiv Verma, Mortgage Broker · Mortgage Architects · FSRA Licence #12728
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Mortgage renewal & switch — don’t just sign the bank’s offer

When your term ends, your bank’s renewal letter is rarely their strongest offer. I compare the wider market so you renew — or switch lenders — on the strongest possible terms.

Quick answer: At renewal you’re free to switch lenders, and doing so is often free. Banks count on you signing the mailed-in rate, which is usually higher than what’s available elsewhere. Starting 4–6 months before your maturity date lets me compare 50+ lenders and secure your best option with no penalty.

Why the renewal letter is a trap

Your lender knows most people simply sign and return the renewal offer. That convenience can cost you thousands over the next term. Renewal is the one moment you can move your mortgage — often with the new lender covering the switch costs.

Your options at renewal

  • Renew with your current lender at a negotiated rate.
  • Switch to a new lender for a better rate or terms (usually penalty-free at maturity).
  • Refinance if you also want to consolidate debt or access equity.

Renew, switch or refinance — side by side

These three words get used interchangeably and they are not the same thing. The difference decides whether you pay a penalty, whether you requalify, and whether you can take money out.

Renew Switch Refinance
What it is Sign a new term with your current lender Move the same balance to a new lender New, larger mortgage — takes equity out
Penalty None at maturity None at maturity None at maturity; yes if done mid-term
Can you borrow more? No No Yes
Do you requalify? Generally not with the same lender Yes — it’s a new lender’s application Yes, in full
Typical cost to you Nothing Often covered by the new lender Legal and appraisal, sometimes a penalty
Best when Your lender matches the market A better rate exists elsewhere You need cash or want to consolidate

The catch most people miss: switching means requalifying. If your income, credit or employment has changed since you last applied, the cheapest rate on the market may not be available to you — and you’ll only find that out after you’ve started. That is exactly why this conversation belongs four to six months before maturity, not four weeks.

How I help

  • 1. Review your maturity date and current terms 4–6 months out.
  • 2. Shop 50+ lenders and negotiate.
  • 3. Handle the switch paperwork so you don’t have to.
Start early
4–6 months before maturity
Switching cost
Often covered by the new lender
Penalty
None at maturity
Cost to you
$0 for standard switches
AI-enabled FAQ

Renewal & switching — your questions, answered

Real answers to the questions clients actually ask. Search or tap any question.

Do I have to renew with my current bank?
No. At the end of your term you’re free to switch lenders, and at maturity there’s usually no penalty to do it. Switching is how you access better rates the bank won’t offer on the renewal letter.
Is the renewal rate my bank mails me their best offer?
Rarely. Renewal letters are typically higher than market rates because lenders count on convenience. Comparing the market at renewal often saves meaningfully.
When should I start the renewal process?
About 4–6 months before your maturity date. That lets me hold a rate, compare lenders, and complete any switch without rushing.
Does switching lenders cost me anything?
For a straightforward switch the new lender often covers the legal and appraisal costs. If you’re also borrowing more (a refinance), some costs may apply — I’ll flag them.
Will switching lenders hurt my credit?
There’s a single credit check, which has a small, temporary effect. The long-term savings from a better rate typically far outweigh it.
Can I consolidate debt or take out equity at renewal?
Yes — renewal is a natural time to consolidate debt or access equity through a refinance, often without a penalty since your term is ending.
What if my financial situation has changed?
Whether your income, credit, or employment has shifted — including going self-employed — there are lenders for it. I’ll match you to one that fits your current picture.
Should I choose fixed or variable at renewal?
It depends on your budget and how you feel about rate movement. I’ll walk you through the trade-offs based on where rates are and your plans.
What happens if I do nothing?
Your lender may auto-renew you, often at a higher rate or even into an open mortgage at a premium. A quick review prevents overpaying by default.
How long does a switch take?
Usually a few weeks, which is why starting several months before maturity matters. Urgent renewals can be expedited.

Related services

Refinancing · Debt consolidation · Calculators

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Go deeper — the answer library

Renewal is the one moment you can restructure without a prepayment penalty. Signing the letter closes that window for another full term.

Open the Renewal Centre →