Mortgage renewal coming up? Don't just sign what the bank sends.

Banks know most clients just sign. The renewal letter is a sales tool, not a benchmark.

On a $600,000 mortgage, even a 0.3% rate difference is roughly $1,800/year — and renewal offers from your existing bank are usually 0.2–0.6% higher than what a broker can find in the open market.

The fix isn't dramatic: a 15-minute comparison call before you sign. Even if you stay with your bank, you'll likely walk away with a better number because they'll match.

• 120 days out

  Most lenders let you lock in a new rate up to 4 months early. This is the sweet spot to start shopping.

• 60 days out

  Your bank usually sends the renewal letter. Treat it as one data point, not the answer.

• 30 days out

  Decision time. Renew with your current lender or initiate a switch — switches typically take 2–4 weeks.

• Renewal date

  If nothing is signed, most lenders auto-renew you into an open or 6-month term at their posted rate. That's expensive — don't let it happen by default.

• 1. Get a real number for comparison

  We pull your current balance, remaining amortization, and any prepayment privileges so we're comparing apples to apples.

• 2. Quote the market

  I send your file to multiple lenders and bring back the best rate + structure (not just the lowest number — terms matter).

• 3. Use it as leverage

  Bring the competing offer to your current lender. They'll often match or come close. If not, switching is straightforward.

• 4. Decide on term length

  5-year fixed isn't automatic anymore. Sometimes a 3-year fixed or a variable makes more sense depending on the rate curve.

Renewal is the only no-penalty window to make bigger changes. Worth asking yourself:

• Cash flow tight?

  Extending amortization back out (e.g. to 25 or 30 years) lowers the monthly payment.

• Got extra cash?

  A lump-sum prepayment at renewal goes 100% to principal — no penalty, no limit.

• Carrying other debt?

  Renewal can be paired with a refinance to consolidate higher-interest debt into the mortgage.

• Life changed?

  Marriage, separation, new co-borrower, removing a co-borrower — easiest to handle at renewal.

For a straight switch at renewal: usually nothing out of pocket. The new lender covers legal/discharge fees as part of their offer. Some smaller lenders may not, so always confirm in writing.

If you're switching mid-term (before renewal), you'll pay a prepayment penalty. That's a different conversation — refinancing math, not renewal math.