Ontario Homeowners: Don’t Quietly Accept Your Mortgage Renewal — It Could Cost You Thousands
Does this scenario sound familiar: you receive a call or letter telling you your mortgage is coming due. The person sending you the letter includes a few sentences about the details, including a new interest rate and a figure showing what your payment will be. Life’s busy, so you tell them to go ahead and lock you into another 5-year term. Unfortunately, too many Ontario homeowners simply sign their bank’s first renewal offer without asking questions. It might seem convenient, but this “silent renewal” can actually lead to higher rates and less flexible terms — all benefiting your lender, not you.
Banks often count on you doing nothing. Their initial offer may look okay– and it may require the least amount of effort on your part – but it’s rarely the best they can do. Worse, the terms may limit your options later, resulting in hefty fees or penalties if you need to make changes during your term.
But is there another way? If you’re on a mission to save extra costs and free up more money for your family, read on.
What Are Your Renewal Options?
When it comes down to it, you really only have two options. You can stay with your lender — or switch to a new one for a better deal. But how do you figure out which lenders to apply to? That’s where a licensed mortgage broker comes in. With experience by your side, you’ll have someone who can shop your mortgage across multiple lenders, find better rates, and handle the switch on your behalf (meaning the energy this process will take from you is kept to a minimum).
Your renewal window starts up to 6 months before maturity (but most banks send offers 3–4 months ahead). Legally, your lender must send a renewal offer at least 21 days before the term ends, but switching lenders or refinancing takes planning and, yes, some paperwork — ideally start at least one month in advance.
Stay or Switch? Here’s the Breakdown:
Staying can offer:
- A quick renewal with minimal paperwork
- No requalification
- A chance to negotiate if you bring a competing offer
- Convenience if you bank with the same lender
Switching can offer:
- A lower mortgage rate and reduced monthly payments
- Flexible mortgage terms tailored to your goals
- No penalty at renewal
- Improved service and a fresh start
Many switches avoid the stress test and are handled smoothly in the background — you’re not required to have any awkward conversations, and you may never even speak to your old lender again.
Yes, switching may involve minor fees (discharge, legal, appraisal), but many lenders cover those costs, and your mortgage broker can show you if switching will still save more money in the long run. This is also a great chance to look at your current institution’s fees and terms with a fine-tooth comb against your new offers.
Your Mortgage Renewal Deserves Attention
With millions of Canadian mortgages renewing by 2026, now is not the time to stay quiet. Get informed, compare your options, and speak to a mortgage broker before signing your renewal. Whether you stay or switch — make the choice that works for you, not just what’s easiest for your bank.
Have a mortgage coming up for renewal in the next few months? Speak with us today and get started on the process before it becomes a time crunch, and save your family the stress of a rushed and costly renewal term. We have access to more than 80 lenders and specialize in client education, meaning we will find the best fits for you to choose from while ensuring you fully understand what you’re signing. See the difference Buckley Mortgage’s 5-star service makes on your next renewal.
