When your mortgage renewal term is nearing its end, it’s tempting to sign the renewal form and move on simply. But here’s the truth: Over 60% of Canadian homeowners renew with their current lender without negotiation, potentially leaving thousands of dollars on the table.
If your mortgage renewal date is coming up, now is the perfect time to rethink your options. Whether you’re in Toronto, Ontario, or anywhere across Canada, asking the right questions can help you secure a better rate, reduce penalties, and take control of your financial future.
Am I Getting the Best Mortgage Rate Available?
Most lenders send a renewal offer with a “posted rate”, hoping you’ll accept without comparing. Before you sign:
- Compare current mortgage rates from different lenders and brokers.
- Ask: “Can you match or beat the lowest rate I’ve found?”
- A small difference in rate (even 0.25%) can mean thousands in savings over your term.
A mortgage broker like Cannect works with multiple lending sources and can often secure better-than-bank rates without you doing the legwork.
Should I Choose a Fixed or Variable Rate This Time?
Your life and financial situation may have changed since your last term. It’s smart to reassess:
| Option | Best For | Considerations |
| Fixed Rate | Predictable payments | Often higher initial rate, but stable |
| Variable Rate | Lower starting rates & flexibility | Could save more if interest rates drop |
With the Bank of Canada signaling potential rate cuts, many homeowners are exploring variable options to keep payments lower and pay off principal faster.
What Penalties Will I Face if I Break My Mortgage Early?
Life happens, job changes, moving, refinancing… and breaking your mortgage early could trigger costly penalties.
Ask your lender clearly:
- “What is the penalty structure—Interest Rate Differential (IRD) or Three-Month Interest?”
- “Can I port my mortgage if I buy a new home?”
Knowing this upfront helps you plan smarter in case you need flexibility down the road.
Can I Switch to a Different Lender Without Paying Fees?
Many Canadian homeowners don’t realize this: you’re allowed to switch lenders at renewal without penalties. Why consider switching?
- Access to lower rates
- Better prepayment options
- More flexible terms suited to current goals
Independent mortgage channels like Cannect specialize in making this transition smooth and cost-effective.
Are There Features Beyond Rate That Could Benefit Me?
Rate matters—but features matter too. Look at:
- Prepayment privileges (can you pay more annually without penalties?)
- Lump sum payment options
- Ability to refinance or blend and extend
- Accelerated payment schedules to become mortgage-free faster
A customised mortgage solution could help you pay off your mortgage years sooner—without drastically increasing monthly payments drastically.
Renewal Is a Chance — Not a Routine Signature
Instead of treating renewal as a formality, think of it as a financial reset opportunity. The right questions today could:
✔ Lower your interest costs
✔ Increase your home equity faster
✔ Give you more flexibility and control over your mortgage
Need Help Navigating Your Renewal?
Cannect empowers homeowners across Canada with low-rate mortgage solutions, flexible terms, and transparent guidance, without the pressure of bank sales tactics.
Get a quick rate comparison or renewal strategy session, no obligation.
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