Mortgage Renewal: Compare Before You Sign

Your renewal letter is an offer, not your only option. Before you sign, make sure it's the right deal for the next few years.

The short answer: Don't just accept your bank's first offer. Get the full terms in writing, then compare it to other options using the same balance and amortization. A lower payment means nothing if it's adding years to your mortgage.

Renew with your lender: What changes: Your next term. What to check: Rate, payment, restrictions.
Switch lenders: What changes: Who holds your mortgage. What to check: Qualifying, transfer costs, timing.
Refinance: What changes: How much you borrow or how you repay. What to check: Full application, penalties, total debt.

What to compare

Rate and term, on the same balance
Monthly payment and years left to pay
How much extra you can pay each year without penalty
The penalty if you sell during the term
Switching costs, and whether the new lender covers them

Start early

Review your options a few months before your renewal date. Switching lenders can take time: income documents, a property review and legal work. Ask what's covered and what fees you'll still pay.

Match the term to your plans

Thinking about moving, retiring, changing jobs or making a big lump-sum payment? A long term gives you rate certainty, but it can lock you in longer than you need. A shorter term means you'll be renewing again sooner. Pick the one that fits what's coming.

Budget for a new payment

If rates have changed since you last signed, your payment may change too. If the new payment feels tight, talk to us before your renewal date, not after. Stretching the amortization can lower the payment, but it adds interest.

Renewal can be a chance to consolidate

If you've built up debt since your last renewal, this can be a good time to roll it in, since you may avoid a penalty for breaking your mortgage mid-term.

Related guides

Let's talk it through

Book a call and we'll go over your options with you.

Alberta: 587-900-0036 | BC: 604-200-3228

These guides are general information, not a mortgage offer or personal advice. Every approval depends on lender review of your income, credit, property and documents. Elevate Lending, powered by BRX, serves clients in Alberta and British Columbia.