Mortgage Renewal in Canada: How to Avoid Overpaying

For many Canadian homeowners, mortgage renewal feels like a routine step — sign the lender’s offer and move on. But what most people don’t realize is that renewal time is one of the biggest opportunities to save money on your home loan.

A mortgage is not just something you “set and forget.” The decisions you make at renewal can affect your finances for years to come.

What Is a Mortgage Renewal?

In Canada, most mortgages have terms between 1 to 5 years, even though the full loan may be amortized over 25 or 30 years. When your term ends, your remaining balance must be renewed at a new interest rate and term.

This is called mortgage renewal — and it’s your chance to review whether your current mortgage still fits your needs.

Why Your First Renewal Offer May Not Be the Best

Your lender will usually send a renewal letter before your term expires. While it may seem convenient to sign and return it, that first offer is not always the most competitive.

Lenders know many borrowers value convenience, but rates and options vary across the market. Even a small difference in rate can mean thousands of dollars in interest over the next term.

What You Can Change at Renewal

Renewal is not just about the rate — you can also adjust your mortgage to better suit your current financial situation.

You may be able to:

Switch from variable to fixed (or vice versa)
Change your payment frequency
Adjust your amortization period
Consolidate debt into your mortgage
Move your mortgage to another lender with better terms

Your financial goals may have changed since you first got your mortgage — renewal is the time to realign your strategy.

How to Prepare Before Your Renewal Date

Planning ahead gives you more options and stronger negotiating power.

Here are smart steps to take:

✔ Review your budget and financial goals
✔ Check your credit to ensure it’s in good shape
✔ Avoid taking on large new debts before renewal
✔ Speak with a mortgage professional early — ideally 3–4 months before your renewal date

Waiting until the last minute can limit your choices.

Renewal Is a Strategy Moment

Your mortgage is one of the largest financial commitments you’ll ever have. Renewal is not just paperwork — it’s an opportunity to improve your financial position, reduce interest costs, and build long-term stability.

Before signing any offer, make sure you understand your options.

Need Help Reviewing Your Renewal?

If your mortgage is coming up for renewal, a quick review could help you make a more informed decision.

Sam Migliaccio
Mortgage Agent Level 2 | M08006552
905-975-6555
sam.migliaccio@mtgarc.ca
www.sammigliaccio.com

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