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Think Twice Before Renewing

January 18, 2016

Never just sign your renewal with your current lender. I can’t stress that enough. First off, their renewal rate right from the start is not the best rate that they can give you. And it’s definitely not the best rate that’s out there! That first offer is the worst offer – a starting point to negotiate from.

Yet, according to a 2011 Manulife Study, 2 out of 3 Canadians renew without negotiating. That’s a lot of extra money in interest being paid towards your mortgage.


The issue here is that lenders, and banks especially, play on Canadian’s inherent trust in our lending institutions. They offer a worse starting rate expecting negotiations, but rarely get any. And banks will remind you about your renewal date as close as they can to the date so you have less time to shop around – which most people miss out on because their mortgage may not be on the top of their mind.


Hopefully you’ve found us before your renewal date has come and gone – if so, you still have time! There’s a few pointers to keep in mind when your renewal date is approaching.

The first is that you need to know that being a loyal customer with your bank will not necessarily give you the best rate. Banks will often take advantage of the fact that you bank there already and start by offering you a higher rate just for the convenience of staying with your current bank. The truth is that there are many lenders out there who are willing to compete on rate and service whether or not you are loyal with your current bank. Loyalty doesn’t matter when it comes to negotiations in the mortgage world.

The second is that there are many great rates out there. Looking beyond your bank, or even banks in general, can land you not only with the best rate on the market, but also with the best product on the market. There are many things to consider before just renewing with your current lender, but beyond the rate you need to consider whether or not their mortgage product they are offering has any hidden fees. See our previous article to learn more.


Saving on your rate is important – only a half percentage point difference will save you $30,000 over a 25 year period (based on a $500,000 mortgage). And knowing the risks and hidden fees in your potential mortgage product is very important as well.


Fortunately we can help you with both. We shop around to 35+ lenders at once and show you the hidden fees for each of the lenders we present to you with the best rates. If you’re up for a renewal or are looking to refinance, get started today on a free, no-hassle 90 Second Mortgage Application.


We’ll do the heavy lifting for you – just know not to resign with your current lender without looking around first!

Check out our free Toronto mortgage broker service.

If you have any questions about how any of this works, feel free to reach out to us at:

Or call and instantly speak to an agent 24/7, Monday through Sunday at (647) 691-5553

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