Mortgage services · 01
Renewals & switches
When your mortgage term ends, your lender sends you a letter with a new rate. You do not have to accept it. Shopping around is free, and I do the work for you.
Cost to you
Free. On standard files, the lender pays the brokerage (OAC).
When to start
About 120 days (4 months) before your term ends.
Good news
A simple switch no longer needs a new stress test.
The basics
What a renewal is
A mortgage has a term — the length of your current contract, often 5 years. When the term ends, the mortgage is not finished. You sign a new contract for the next few years.
That moment is called the renewal. At renewal you have a choice:
- Stay with your current lender at the rate they offer, or
- Switch to a different lender with a better offer — with no penalty, because your term is over.
Most people just sign the letter their bank sends. Banks know this. So the first offer in that letter is usually not their best one.
What this means for you
Say you owe $500,000. A rate that is just 0.25% lower saves you roughly $1,250 every year — about $6,000 over a 5-year term. That is real money for a few phone calls that I make, not you.
A rule change in your favour
No new stress test on a simple switch
The stress test is a federal rule. Lenders must check that you could still pay your mortgage if rates were about 2% higher than your contract rate.
In the past, switching lenders at renewal meant passing the stress test again. Many people felt trapped with their bank because of it. That rule has changed.
- A straight switch — same loan amount, same payoff schedule, new lender — no longer needs a new stress test.
- This applies whether your mortgage is insured or not.
- If you want to borrow more or stretch your payments over more years, that is a refinance, and full checks apply. Read about that on the Refinance page.
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You send me your renewal letter
Any time in the last 120 days of your term. Most lenders let you lock a new rate up to 4 months early.
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I shop the market
I compare your lender's offer against banks, credit unions, and mortgage-only lenders — more than 40 in total.
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You choose: stay or switch
Sometimes your own lender wins once they see competition. Sometimes a switch saves thousands. You see the numbers side by side.
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The paperwork mostly happens without you
On a switch, the new lender usually covers the transfer costs. You sign, and the lenders handle the rest.
Careful
Two things to watch for
1. Doing nothing. If you ignore the letter, many lenders renew you automatically — often at a high “posted” rate, or into a short open term that costs even more. Doing nothing is usually the most expensive choice.
2. Breaking your term early. Leaving your lender before the term ends triggers a pre-payment penalty — a fee for exiting the contract early. Sometimes a better rate is still worth it, but the math must be checked first. I explain how penalties work in plain words in this post: Mortgage penalties, explained simply.
Before you sign
Four mistakes that cost the most
- Signing the first letter. It is an opening offer, not a final one. Almost nobody gets the lender's best rate by accepting it.
- Waiting until the last week. Start 120 days out. A rushed switch is a switch you cannot finish in time.
- Looking only at the rate. Ask about the penalty formula, the pre-payment privileges, and whether the mortgage can move with you.
- Adding money without checking. Borrowing more turns a simple switch into a refinance, and full qualification applies again.
What this means for you
You only need to do one thing: send me the renewal letter when it arrives. I handle the comparison, and you decide with the numbers in front of you.
If your own lender turns out to have the best offer, I will tell you that too.
Common questions
Questions people ask
Short answers in plain English. Your situation may be different — ask me anything on a free call.
What does switching lenders cost me?
On a straight switch at the end of your term there is no penalty. The new lender usually covers or refunds the transfer fees, and often the appraisal too. In most cases your out-of-pocket cost is zero — the decision comes down to the rate and the terms.
Can I renew early, before my term ends?
Often yes. Many lenders let you renew with them up to 120 days before the end date with no penalty. Moving to a different lender before the end date is different — that triggers a penalty, and we would do the math together before you decide.
My mortgage is with a big bank. Can a broker really move it?
Yes. A renewal is a brand-new contract, and your payment history and equity travel with you. Lenders compete hard for switch files, because people who have paid a mortgage for years are proven, low-risk borrowers.
What happens if I just do nothing?
Most lenders will renew you automatically, but usually at a rate above the market. Some roll you into a six-month open term that costs even more. It is the default option because it makes the lender money — not because it is good for you.
Do I need a new appraisal or a lawyer to switch?
Usually no. On a straight switch the new lender normally covers the transfer costs, and many pay for the appraisal if one is needed. There is no land transfer tax and no new lawyer bill, because you are not buying anything — you are moving the same mortgage.
Renewal coming up in the next four months?
Send me your renewal letter. I will tell you honestly whether the offer is good — and what the market would give you instead.