Mortgage renewals
Your renewal is the one point in your term where you can move without a penalty. We look at what your lender is offering and compare it with the wider market.
- Your renewal offer reviewed
- Switching to a new lender
- Term and product choice
- Timing before maturity
Start about four months early
Many lenders will hold a rate for a switch about 120 days before your maturity date. Starting then gives you time to compare. Your current lender often sends its offer closer to the date.
You can switch lenders at maturity without a penalty
At maturity, you can move your mortgage to another lender without a prepayment penalty. Since November 2024, a straight switch of an uninsured mortgage to a federally regulated lender no longer needs to pass the stress test, as long as the amount and amortization stay the same. There can be small discharge or appraisal costs, and new lenders often cover the legal fees on a switch.
Answers
All answersWhen should I start looking at my mortgage renewal?
About four months before your maturity date. Many lenders will hold a rate for a switch around 120 days out, which gives you time to compare.
Can I switch lenders at renewal without a penalty?
Yes. At maturity, you can move your mortgage to another lender without a prepayment penalty. There may be small discharge or appraisal costs, and new lenders often cover the legal fees on a straight switch.
Do I have to pass the stress test to switch lenders at renewal?
Not always. Since November 2024, an uninsured mortgage moving to a federally regulated lender at renewal does not need to requalify, as long as the amount and amortization stay the same.
Should I sign my bank's mortgage renewal offer?
Compare it with the market first. The first renewal offer is not always the lender's best, and it helps to know what other lenders would offer before you sign.
What happens if I miss my mortgage renewal date?
Many lenders move you into a short open term or renew you automatically, often at a rate higher than you could negotiate. You can usually still switch afterward. Starting early keeps more choices open.