When your mortgage term ends, you’re faced with a decision: renew with your current lender or explore other options. While it might be tempting just to sign the renewal offer that lands in your inbox, doing so without looking at the bigger picture could cost you thousands of dollars in the long run.
At Cannect, we believe a mortgage renewal is an opportunity, not just an obligation. It’s your chance to re-evaluate, re-negotiate, and potentially save big. Whether your goal is to lower your monthly payments, tap into your home equity, or pay off your mortgage faster, here are five tips to help you get the most out of your mortgage renewal.
Reassess Your Financial Goals
A lot can change in five years — your job, your income, your family size, and your lifestyle. That’s why it’s important to treat your mortgage renewal as a chance to review your financial goals.
- Are you planning a major life event like starting a business, having a baby, or buying a second property?
- Do you want to pay down your mortgage faster or lower your monthly expenses?
- Are you carrying high-interest debt that could be consolidated into your mortgage?
These are all factors that can — and should — influence the type of mortgage product you choose moving forward. At Cannect, we work with you to understand your evolving needs and help tailor a mortgage solution that fits your future, not just your past.
Start the Renewal Process Early
Most lenders send renewal notices about 30 days before your term ends, but did you know you can start the process as early as 120 days in advance?
Starting early gives you a huge advantage:
- More time to shop around for the best rate
- Freedom to negotiate with your current lender or explore other options
- The ability to lock in a rate before a potential interest rate increase
If you wait until the last minute, you’re more likely to renew under pressure, and that’s when homeowners miss out on better opportunities. At Cannect, we encourage our clients to get a head start so they’re in the driver’s seat when it comes to renewal time.
Don’t Accept the First Offer — Negotiate
Here’s an insider secret: the first renewal offer you receive from your lender is rarely their best. Banks count on you staying put without asking questions, but a simple phone call (or a conversation with a broker) can often result in a better deal.
Better yet? Let us do the negotiating for you.
At Cannect, we have access to dozens of lenders and know what competitive rates look like. We’ll do the heavy lifting to ensure you don’t leave money on the table.
Lock In a Rate (Even If You’re Not Ready Yet)
Think interest rates might go up before your renewal date? You can secure today’s low rate with a rate hold, even if you’re still weighing your options.
Rate holds typically last between 60 to 120 days, depending on the lender, and they give you peace of mind in a fluctuating market. If rates drop before your renewal, you can still access the lower rate — but if they go up, you’re protected.
Cannect can help you set this up quickly, so you’re not caught off guard by market changes.
Explore Your Options — Even If It Means Switching Lenders
Sticking with your current lender might feel convenient, but that doesn’t mean it’s the smartest financial move. There’s no penalty for switching lenders at renewal, and doing so could land you a better rate, more flexible terms, or features that suit your lifestyle.
Sure, there might be a bit of paperwork involved, but with Cannect, the process is seamless. We handle the back and forth so you can sit back and enjoy the savings.
Bonus Tip: Talk to a Mortgage Broker (Like Us!)
Mortgage renewals aren’t one-size-fits-all, and the fine print matters. That’s where Cannect comes in. As a licensed mortgage broker and lender, we have the tools, connections, and insights to get you the best mortgage for your unique needs.
Plus, if you’re not qualifying with your current lender or traditional banks, we can offer an alternative solution, our very own Cannect Home Equity Loan.
Your mortgage should work for you, not the other way around.
Let’s talk about how Cannect can help you renew smarter.
📞416.766.9000 to get started — it’s free, and it could save you thousands.
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