Mortgage Renewal & Transfer
Get the best rate when your mortgage term ends - don't settle for less
Don't Just Renew - Compare and Save!
When your mortgage term ends, your current lender will send you a renewal offer. Many homeowners simply sign it without shopping around - and this could cost you thousands of dollars.
As a mortgage broker, I can help you compare offers from 26+ lenders to ensure you're getting the best possible rate and terms for your renewal.
What is Mortgage Renewal?
Mortgage renewal occurs when your current mortgage term expires (typically every 1-5 years), but your loan is not yet fully paid off.
At this point, you have three main options:
- Renew with your current lender at their offered rate
- Transfer to a new lender for a better rate or conditions
- Refinance to access equity or change your mortgage structure
The key is to start shopping 120 days before your renewal date to secure the best rate and avoid being locked into an unfavorable offer.
What is a Mortgage Transfer (Switch)?
A mortgage transfer, also called a 'switch', means moving your existing mortgage to a new lender at the end of your term - without changing the mortgage amount or structure.
Benefits of Transferring:
- Better interest rate - Often significantly lower than your current lender's renewal offer
- No penalty - Transfers at term end are penalty-free
- Better terms - More flexible prepayment options, portability, etc.
- No appraisal required in most cases
- Minimal fees - Many lenders cover legal/transfer costs
The transfer process is simple and quick - I handle all the paperwork and coordination with both lenders.
Why Your Bank Wants You to Just Sign
Banks count on customer inertia and loyalty. They know that most people don't shop around at renewal time, the renewal process seems complicated, and customers assume their current lender is offering a competitive rate.
The reality: Your lender's initial renewal offer is often 0.25% to 1.00% higher than the best available rate in the market.
On a $300,000 mortgage, a difference of just 0.50% over 5 years equals approximately $7,500 in extra interest.
This is why it's crucial to have an independent mortgage broker compare all available options before you sign anything.
When Should You Start the Process?
Timeline for Renewal/Transfer:
120 days before maturity: Contact me to start shopping for rates. Many lenders offer rate holds for 120 days, protecting you against rate increases.
90-120 days before: Review your financial situation and goals. Do you want to change your amortization? Access equity? Change payment frequency?
60-90 days before: Submit applications to secure the best rate and terms.
30-45 days before: Finalize your choice and complete the transfer/renewal paperwork.
At maturity: Your new mortgage (or renewed mortgage) takes effect seamlessly.
Important: Don't wait until the last minute! Starting early gives you the most negotiating power and the best selection of rates.
Common Renewal Mistakes to Avoid
1. Signing the First Offer
Your lender's first offer is rarely their best. Always negotiate or compare with other lenders.
2. Waiting Until the Last Week
This limits your options and puts you in a weak negotiating position.
3. Only Looking at the Rate
Consider prepayment privileges, portability, penalty calculations, and other terms - not just the interest rate.
4. Not Reviewing Your Financial Situation
Your needs may have changed since you first got your mortgage. Maybe you can afford higher payments to pay it off faster, or you need to access equity.
5. Assuming Transfer is Complicated
With a broker handling everything, transferring to a new lender is simple and often costs you nothing.
What Documents Do You Need?
The renewal/transfer process requires minimal documentation:
- Current mortgage statement showing balance and maturity date
- Proof of income (recent pay stubs, T4s, or tax returns)
- Property tax bill
- Proof of home insurance
- Identification (driver's license or passport)
In many cases, if you're simply transferring without changing the mortgage amount, no property appraisal is required.
I'll guide you through exactly what's needed for your specific situation and help you gather everything efficiently.
How I Help You Get the Best Deal
As your mortgage broker, I provide:
- Access to 26+ lenders - Compare rates from major banks, credit unions, and alternative lenders
- Expert negotiation - I know what rates are truly available and can negotiate on your behalf
- Rate monitoring - I'll watch the market and alert you to the best time to lock in your rate
- Complete paperwork handling - I coordinate everything between lenders, lawyers, and you
- Unbiased advice - I'm paid by the lender, not you, and I have no loyalty to any particular institution
- Time savings - One conversation with me replaces hours of calling different banks
My goal is simple: save you money and make the renewal process stress-free.
Francis LavalléeMortgage broker - AMF: 248693
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