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Mortgage renewal coming up? Don't just sign what the bank sends.
Your renewal letter looks simple , one signature and you're done. The catch: the rate on that letter is rarely the best one available to you. Renewal time is the easiest moment in your whole mortgage to check.
The full picture, made simple.
- 01Why renewal offers often miss the mark
- 02Your renewal window , start earlier than you think
- 03A simple way to shop around
- 04When it might be worth more than a renewal
- 05What it usually costs to switch
Disclaimer: This content is for educational purposes only and should not be considered financial, mortgage, or legal advice. Mortgage programs, rates, and qualification requirements can change. Please consult with a licensed mortgage professional for advice specific to your situation.
Why renewal offers often miss the mark
Most people just sign the renewal letter their bank sends. That's exactly what the letter is designed for.
Even a small rate difference can add up to real money over a few years. The fix is usually simple: a short comparison before you sign.
Your renewal window , start earlier than you think
Most lenders let you start the conversation months in advance. Here's a general timeline:
- About 120 days out
A good time to start comparing. Many lenders will let you hold a rate this early.
- About 60 days out
Your bank usually sends a renewal offer. Think of it as one option, not the only one.
- About 30 days out
Decision time , whether you're renewing where you are or switching lenders.
- Renewal date
If nothing is signed, many lenders move you to a short-term default option, which is often more expensive. Worth avoiding by mistake.
A simple way to shop around
You don't need to do this on your own. A licensed broker can handle most of it for you.
- 1. Pull your numbers
Start with your current balance, remaining amortization, and any prepayment privileges so any comparison is apples to apples.
- 2. Compare the market
A broker can send your file to multiple lenders and bring back options that fit your situation , not just the lowest sticker rate.
- 3. Use it as context
A real competing offer often helps in the conversation with your current lender.
- 4. Think about term length
The 'right' term isn't automatic. The best fit depends on your plans and what the market is doing , a broker can walk through the trade-offs.
If you're doing a straight switch (same balance, same amortization), some lenders make the process simpler than a full refinance. The specifics vary by lender.
When it might be worth more than a renewal
Renewal is usually the easiest moment to make bigger changes without a prepayment penalty. A few things worth asking:
- Is cash flow tight?
Adjusting your amortization can change your monthly payment. There are trade-offs to talk through.
- Have extra savings?
Renewal can be a good moment to put a lump sum toward your principal, depending on your lender's rules.
- Carrying other debt?
Some homeowners pair a renewal with a refinance to roll higher-interest debt in. It's not always the right call , it's worth doing the math.
- Life changes?
Adding or removing a co-borrower is often easiest at renewal. A broker or lawyer can guide the specifics.
What it usually costs to switch
For a straight switch at renewal, many lenders cover the legal and discharge costs as part of their offer. Not all do , it's worth confirming in writing.
Switching mid-term (before your renewal date) is different. That usually involves a prepayment penalty and falls under refinancing math, not renewal math.
Want to see what your options actually look like?
A quick conversation can give you a clear side-by-side before your renewal date , no pressure, just real numbers.
Questions readers ask most
Quick recap
- Most renewal letters are designed to be signed quickly , and aren't always the best rate available.
- Many lenders allow you to start comparing rates a few months before your renewal date.
- A simple shop-around can give you a real side-by-side and useful context with your current lender.
- Renewal is often the easiest moment to make bigger changes without a prepayment penalty.
- Straight switches at renewal are usually simpler than mid-term changes.
- When in doubt, talk to a licensed mortgage broker before signing your renewal.
Don't guess , just ask.
Share your renewal date and current rate, and we can walk through a clear side-by-side together , no pressure, no jargon.