Mortgage

Mortgage Renewal Strategy: How to Avoid Paying More Than You Should

Sam Sethi
February 22, 20265 min read
Mortgage Renewal Strategy: How to Avoid Paying More Than You Should

Most Canadians simply sign their mortgage renewal letter without shopping around. This loyalty costs them thousands. Here's how to approach your renewal strategically.

Start Early — 4-6 Months Before

Lenders send renewal offers 30-60 days before maturity, hoping you'll just sign. Start shopping 4-6 months early to have leverage and options.

Get Competing Offers

I can shop your mortgage to 30+ lenders in one day. Having competing offers gives you negotiating power with your current lender. Often, they'll match or beat the best offer to keep your business.

Consider Switching Costs

Switching lenders at renewal is usually free — no legal fees, no appraisal costs. The new lender covers these to win your business. However, if you're breaking mid-term, penalties apply.

Don't Focus Only on Rate

The lowest rate isn't always the best deal. Consider:

  • Prepayment privileges (can you pay extra?)
  • Penalty calculations (some lenders have punitive penalties)
  • Portability (can you take it to a new home?)
  • Blend-and-extend options

Renewal coming up? Let me negotiate on your behalf. Call Sam at 647-784-7924.

Ready to Take the Next Step?

Sam Sethi is here to help you navigate the Toronto real estate market. Get personalized advice tailored to your goals.

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