Got your renewal letter? Don't sign it yet.
Your bank's renewal offer is the easiest option, not necessarily the right one. Switching lenders at maturity carries no penalty — and could save you money. Let me compare before you commit.Why it is worth a second look
Renewal is the one point in your mortgage where you can move without penalty. Here is what that is worth.The first offer is rarely the best one
Renewal letters are pre-filled for a reason — signing is the easiest thing you can do, and the lender knows most people will. The posted renewal rate is a starting point, not a final answer.
You have leverage you are not using
At maturity you are free to leave with no penalty. That is the one moment your lender has to compete for you — and the only way to use it is to know what else is on the table.
Switching is simpler than refinancing
A straight switch at maturity moves your existing balance to a new lender. There is no penalty, and many lenders cover the legal and appraisal costs of taking your business.
It is a chance to restructure
Renewal is the natural moment to change your amortization, switch between fixed and variable, or add a prepayment privilege — without breaking anything.
What to compare before you sign
Rates change weekly and depend on your balance, term and profile, so I quote current numbers directly rather than publishing figures that go stale. These are the terms worth checking.Renewal coming up? Start early.
Send me your renewal letter
I review your current terms and start comparing what other lenders will offer you.
Hold a rate
Most lenders will hold a rate for you ahead of maturity. If rates fall before you close, you take the lower one.
Stay or switch
With a competing offer in hand, your current lender often improves theirs. Either outcome works in your favour.
Sign and close
I coordinate the paperwork with the new or existing lender so nothing lapses.
Why you qualify for less than you expect
Federally regulated lenders must approve you at a qualifying rate, not the rate you actually pay. Under the B-20 guideline that is the greater of your contract rate + 2% or the 5.25% benchmark floor.
Because the test uses a higher rate than your actual payment, the amount you qualify for is lower than your real budget suggests. How much lower depends entirely on your income, existing debts, down payment and amortization — so the only useful answer is one calculated from your own numbers.
Limited Canadian credit history? I help newcomers qualify anyway
A thin credit file is not a dead end. I work with lenders who assess newcomers on foreign credit, employment letters and down payment strength rather than a Canadian score alone.
Self-employed and hard to document?
Business owners and contractors often write down income for tax reasons, which the stress test then holds against them. I know which lenders look at the whole picture.
Renewal questions
Renewal letter in hand?
Send it over and I will tell you honestly whether it is worth signing. No pressure, no obligation.