Mortgage Renewal Secrets: Why Loyalty Doesn't Pay Off
Your renewal letter shows up in the mail with a rate on it, sitting there waiting for a signature. Most people sign it and send it back without a second thought. That letter is not the best your lender can do for you. It's just the easiest thing for them to offer.
What your bank does not want you to know at renewal
There are three things worth knowing before you sign. None of them are complicated.
1. You can leave your existing lender
You are not stuck. You have the option to switch lenders at renewal, at no cost. I work with 120 lenders through the brokerage, and any one of them could have a better deal than the one sitting in your mailbox right now. People treat renewal like a formality with their current bank. It's not.
2. Loyalty does not always get rewarded
If you've been with the same lender for many years, you'd think that counts for something at renewal time. It doesn't, not automatically. That's exactly why you need to shop around and find the best deal instead of assuming the institution that's had your mortgage the longest is going to hand you their sharpest rate.
3. The rate in the letter is not their best offer
The notice you get in the mail is not always the lowest rate they can offer you. They want you to just sign it. Pick up the phone and call them directly, ask what their actual best offer is. Then that's where we come in. Once you have their number, we get in touch with you to see if we can offer something lower with a different lender, and whether switching makes sense given there's literally no cost to do it.
Why this matters more right now
Many of you bought during the pandemic when rates were about as low as they've ever been. If that's you, you're probably about to double your rate. That's the moment where shopping your renewal instead of just signing the letter makes the biggest difference.
If you haven't had a look at what a broker can actually access on your behalf, our mortgage services page walks through how we work with lenders on your file. Worth understanding before your renewal date shows up, not after you've already signed.
What to actually do when the letter arrives
Don't sign it the day it lands. Call your current lender and ask them, directly, what their best rate is, not the one printed on the page. Write that number down. Then call me or send a message through our contact page, and we'll compare it with what other lenders are offering right now. Then we'll see whether switching makes sense.
Renewal isn't a formality. Give me a call at 226 787 4745 before you sign anything, and let's talk about your renewal.
Talk it through with a broker
Every file is different, and the right answer depends on your income, your timeline, and which lenders will actually work with your situation. If you want a straight read on where you stand, book a mortgage review and we will go through it together.
Linden Crain is a licensed mortgage broker (FSRA #M22004731) with Dominion Lending Centres, Elite Mortgage Group, serving Windsor-Essex and Ontario. This article is general information, not personalized financial advice. Mortgage products, rates, and qualification rules change and vary by lender and by applicant.
