Top Tips For Renewing Your Mortgage

June 26, 2013

The majority of Canadians, who have a mortgage, will tell you that their mortgage is one of their largest monthly expenses. Nevertheless, 27% of Canadians will automatically renew their mortgage when their term is up without trying to acquire a better deal. There are ways that you can get the most out of your mortgage renewal, including the lowest mortgage rates Canada lenders are offering. Some of the top tips are listed here.

Don’t Wait Until The Last Minute- Six months before your mortgage comes up for renewal start shopping around for better Canadian mortgage rates.

Six months is the longest that lenders will guarantee a discounted mortgage rate. If the rates rise (which might just happen sooner than later) , then you have a protection against the increase. However, if the rates lower, you can renegotiate your rate guarantee.

Research – Go online and shop around. There are multiple websites detailing the existing mortgage rates that Canada lenders are offering. Knowing the Canadian mortgage rates may help when bargaining for a better rate from your present lender.

The Posted Rate Is Not The Only Rate – If your current lender is offering you the best policies, advice, and mortgage features, you can subsequently ask your bank to match or beat what your present lender is providing.

If you do not ask your bank for a better rate, then you won’t receive one. They are not going to offer you anything more than what they have posted. When talking to a bank let them know you would be willing to transfer other investments or accounts to their bank in exchange for lower rates.

Negotiate All Of Your Options – Negotiating more than just your interest rate is critical during the renewal process. You can help lower your cost when you negotiate the amortization period, your payment schedule flexibility and the type of mortgages: variable rate mortgages or fixed rate mortgages.

Don’t Stay With Your Current Lender – Renewal time is the best time to switch lenders because there is no penalty. Don’t stay with your current lender without at least shopping around to see what other’s can do for you.

Hire A Broker – Hiring a broker is a smart option because it will take time, effort and knowledge to shop around for better Canadian mortgage rates. If you hire a broker they will do all of the leg work, they will find you the best rates, write the proposal and summit it to the lenders that are best suited for your current needs. Because mortgage brokers are specially trained to work for you and your new mortgage, they often find you a better mortgage package and save you more money than doing it alone.

Fun financial fact for homebuyers – If you are shopping around for a mortgage on a $150,000 house, you could actually save $10,000 over 25 years by saving half of a percentage point on your mortgage rate. Yet another reason it is so vital to shop around for the best Canadian mortgage rates.


My wife and I have been locked into a mortgage with an interest rate of 4.49 and becomes renewable on August first 2015, would you kindly let us know how to approach new lenders to obtain the best offer.

Bill & Ofelia Pomfret says: