Breaking the Renewal Routine: Why You Should Never Accept Your Bank’s First Offer

When your mortgage term comes up for renewal, your bank will usually make things super easy for you. They’ll send you an email or a letter with a simple “click here to renew” button — no meetings, no paperwork, no questions asked.

Sounds convenient, right? But that convenience can quietly cost you thousands of dollars over your next term.

Let’s talk about why your renewal deserves just as much attention as getting your first mortgage — and how I can help you make sure you’re not overpaying.

1. The “Set It and Forget It” Trap

Banks know most homeowners are busy, and they count on you not shopping around. That’s why renewal offers are often higher than what new clients are getting for the same product.

It’s called renewal pricing — and it’s designed to make you feel like you’re getting a fair deal, even when you’re not.

Even a small difference matters. On a $500,000 mortgage, just 0.20% higher could mean paying more than $5,000 extra over five years.

The good news? You don’t have to switch banks to save that money. I can often negotiate directly with your current lender to lower your rate or find a better offer elsewhere — and handle the paperwork for you.

2. Renewal Is the Perfect Time to Revisit Your Goals

A mortgage renewal isn’t just about rates — it’s about strategy.

It’s the perfect opportunity to ask:

• Do my current payments still fit my budget comfortably?

• Have my goals changed since my last renewal?

• Could I shorten my amortization and save interest?

• Should I consolidate other debts while rates are lower?

Your life may have changed a lot since you first signed your mortgage. Maybe you’ve built up equity you want to use for renovations, a cottage, or to invest. Or maybe you’d prefer more flexibility for a future move.

When we go over your renewal options, I’ll help you find a solution that fits your goals today — not just what made sense years ago.

3. You Don’t Have to Wait Until the Last Minute

Many homeowners don’t realize you can start shopping for your next mortgage up to 120 days before your term ends.

That means you can secure a rate hold in advance — protecting you if rates rise before your renewal. And if rates drop, we can adjust and make sure you still get the lower rate.

I also look for early renewal or blended rate options when they make sense. These let you take advantage of better market conditions without breaking your mortgage or paying a big penalty.

Renewing early can often save you stress, time, and money — but only if you plan ahead.

4. The True Cost of Loyalty

Your bank may thank you for being a “loyal customer,” but loyalty often means paying more.

When you renew directly with your lender, you’re only seeing one option. When you work with me, I can compare dozens of lenders to see who’s offering the best mix of rate, flexibility, and terms for your situation.

Sometimes the best deal isn’t the lowest rate — it’s the mortgage that gives you the freedom to move, refinance, or pay down faster when your life changes.

That’s the kind of flexibility we’ll look for together.

5. How to Make Your Renewal Work for You

Here’s my best advice for anyone coming up to renewal:

1. Start early – Reach out to me at least 4 months before your term ends so I can start comparing options.

2. Don’t auto-renew – Even if your bank makes it easy, it’s worth reviewing what else is available.

3. Think about your future plans – Moving soon? Expecting changes in income? Let’s plan for flexibility.

4. Review the fine print – I’ll make sure you understand all penalties, portability rules, and restrictions.

5. Ask questions – That’s what I’m here for. I’ll walk you through your options clearly, so you can make the most confident choice.

Final Thoughts

Renewing your mortgage shouldn’t feel like a chore — it’s actually one of the best opportunities to save money and strengthen your financial position.

Before you click that “renew” button, reach out to me. I’ll review your current offer, compare it with what’s available across multiple lenders, and make sure your renewal actually works for you.

It only takes a quick chat, but it could save you thousands.