Mortgage renewal season is here for a lot of Canadians — especially those who locked in 5-year terms back in 2021 and 2022 when rates were historically low. If that's you, this post is important.
The mistake most homeowners make
Your bank sends you a renewal letter. You look at the rate, think 'okay that's fine,' sign it, and go back to your life. Most Canadians do exactly this. And most Canadians leave significant money on the table.
Your lender's renewal offer is rarely their best offer. It's a starting point. And you have more leverage at renewal than at any other point in your mortgage — because switching to a new lender at renewal is completely penalty-free.
What I do at renewal
About 120 days before your renewal date, I'll reach out. We'll review your current financial situation, your goals for the next term, and whether it makes sense to stay with your lender or switch. Then I shop the market — all 50+ lenders I have access to.
Even a 0.25% difference in rate saves you money. On a $600,000 mortgage over a 5-year term at 0.25% lower rate, you're looking at roughly $7,500 in savings. On 0.50% lower, nearly $15,000. That's real money.
Fixed vs. variable at renewal
This is the big question right now. With rates having come down from their 2023 peaks, the fixed vs. variable decision is nuanced. Fixed rates offer certainty. Variable rates offer potential savings if rates continue to fall. I'll walk you through both scenarios with your specific numbers and help you choose what fits your risk tolerance and financial goals.
What to do right now
If your renewal is within the next 6 months, let's talk. If it's within 4 months, we need to talk now. Rate holds at renewal are typically available for 90–120 days, so timing matters. Reach out and let's make sure your next term works in your favour.
Cari McClelland
Licensed Mortgage Broker, Mortgage Architects #MB604529
Helping British Columbians make smart, confident mortgage decisions since 2014. Have a question? Get in touch.