The four steps I walk every client through — including how early to start and the leverage you actually have.
Renewal is where most Canadians lose money. Not because they made a bad choice, but because they made the easiest choice: signing the letter the lender sent. The lender's renewal offer is one option, not the answer. Treat it that way and you keep your leverage.
Here's the four-step playbook I walk every client through when their renewal window opens.
Most lenders send the renewal letter 30 days before maturity. By then, you have almost no leverage and almost no time to shop. Start the conversation 4-6 months before maturity. That window gives you time to gather quotes, weigh options, and let your existing lender know you have alternatives — which is, in itself, leverage.
I told the Financial Post last winter that refinancing at renewal time is presenting unexpected challenges for a lot of borrowers. The "challenge" is almost always created by the timeline, not the math. Start early.
The number on the renewal letter is rarely the lender's best offer. Many lenders price renewals 10-50 basis points above what they'd offer a new client through a broker. Read the letter for the maturity date and balance, then put the rate aside and shop.
Send me your current mortgage details (lender, rate, balance, maturity date) and I'll check what the broader market would offer for the same product. If your existing lender is competitive, we sign with them. If they're not, we move you.
Most renewal conversations focus on rate. The expensive decision is product structure. A 4.49% rate with a 3-month interest penalty looks great until you need to break the mortgage in year three and learn the penalty is actually 14 months of differential interest. Before you compare rates, decide:
Once you have a competitive offer in hand, send it to your existing lender and ask them to match. Many will. Some won't. Either way, you've quantified what staying costs you. If they match, you sign with them and you've saved real money. If they don't, you've already done the work of finding a better home.
The point isn't loyalty or disloyalty. It's that an unsolicited renewal letter, signed without comparison, is a guess at what the market is willing to offer you. You don't have to guess.
That's it. From there I can usually tell you within an hour whether your existing lender is offering you a good deal, and if not, what the alternatives look like.
Your existing bank is one option among many. Treat it that way. Start early, get a competing quote, and let the math — not the inertia — decide where your mortgage lives for the next term.
Send me your details and I'll show you what the broader market would offer.