Mortgage Renewal in the GTA & Ontario

Your mortgage is coming up for renewal. The bank sends you a letter with a rate and a deadline, hoping you will just sign and send it back. Most people do. That signature is one of the most expensive autographs you will ever give. Your renewal is not paperwork. It is a negotiation, and the bank is counting on you not treating it like one.

The renewal letter is a starting bid, not a final offer

Let me tell you a secret from the bank side. That renewal rate in the letter is not the bank’s best rate. It is the bank’s opening bid. The letter goes out automatically, usually with a rate well above what the bank would actually accept. The bank knows most borrowers will not shop around. Their internal numbers count on it. Retention departments exist because the bank knows a large share of renewals just sign. The offered rate has margin built in, margin that becomes pure profit if you do not negotiate. When a client brings me their renewal letter, the first thing I do is ignore the rate completely and go find what the market actually offers.

Start 4 to 6 months early: the timeline that saves you thousands

You can start shopping your renewal 120 to 180 days before it matures. Most lenders will hold a rate for 90 to 120 days. Here is the timeline that works. Six months out: we review your current mortgage, your penalty-free options, and your goals. Four months out: we lock in a competitive rate hold so you are protected if rates rise. Two months out: we finalize the switch or refinance. At renewal: you move to the better deal with zero stress. Compare that to the typical borrower who opens the renewal letter three weeks before the deadline and panics. Time is leverage. The earlier we start, the more options you have.

Switching lenders is easier than you think

People stay with their bank because switching sounds like a hassle. It is not. A straight switch at renewal, same balance and same amortization, usually means no appraisal fee, no legal fee, and no requalification stress in many cases. The new lender handles the transfer. You sign a few documents. Your payment just starts going somewhere cheaper. The main exception: if you want to change the loan amount or tap equity, that becomes a refinance, which has a few more steps. But a plain switch? It is some of the easiest money you will ever save. I have clients who saved $300 a month for an hour of paperwork.

The bank’s retention game: a war story

A client came to me with a renewal offer of 5.89 percent from his bank. We found 4.79 percent elsewhere. He called his bank to leave, and suddenly the retention department found 4.84 percent. They could have offered that on day one. They chose not to. This happens constantly. The bank’s strategy is simple: offer high, hope you sign, discount only when forced. The retention rep’s job is to keep you, and they have discretion you will never see in the letter. Here is the thing though: even the retention offer is rarely the market best. It just needs to be close enough to stop you from leaving. Shop first, then decide.

Fixed vs variable at renewal: how to actually decide

Everyone asks me to predict rates. I will not, and you should distrust anyone who does. Here is how to actually decide. Fixed gives you certainty: your payment cannot change, which matters if your budget is tight or you lose sleep over rate news. Variable gives you flexibility: lower penalties if you break early, and historically it has often won, but your payment can rise. The real questions: how long will you stay in this home? How would a one percent increase affect your life? Do you value certainty or flexibility more? Your answer is personal. My job is to show you the real numbers for both, not to sell you my rate forecast.

Frequently Asked Questions

When should I start my renewal process?

Four to six months before your maturity date. That gives us time to hold a competitive rate, compare lenders properly, and switch without rushing. Starting early costs nothing and protects you if rates rise. Starting late hands all the leverage to your bank.

Does switching lenders at renewal cost money?

A straight switch usually costs you nothing out of pocket. No appraisal fee, no legal fee in most cases. The new lender covers the transfer costs because they want your business. If you are refinancing to access equity or change the amount, there are legal and possibly appraisal costs, but we factor those into the math before you decide.

Will I need to requalify to switch lenders?

For a straight switch with the same balance and amortization, most lenders do not require full requalification. You will provide updated income documents, but it is far simpler than your original approval. If you are increasing the mortgage amount, that is a refinance and full qualification applies.

What if my bank will not match a better rate?

Then you leave. That is the whole point of shopping. Banks count on loyalty and inertia. There is no prize for staying with a lender that overcharges you. I will handle the switch paperwork, and your only job is to enjoy the lower payment.