Maximize Your Renewal Opportunity
Your mortgage renewal is the perfect time to review your options, negotiate better terms, or switch to a better lender. This checklist ensures you get the best possible deal.
1 Renewal Prep
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Review renewal statement from lender
Check principal balance, renewal rate, payment details, and term options. -
Check current mortgage rates
Compare your lender's renewal offer with current market rates. -
Decide on preferred term and rate type
Choose between fixed/variable rates and determine ideal term length. -
Consider changes and improvements
Lump-sum payment, debt consolidation, combining other loans. -
Confirm your financial goals
Lower payment, pay off faster, access equity, or maintain status quo.
2 Documentation Needed
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Government-issued photo ID
Driver's license or passport for all borrowers. -
Copy of mortgage renewal letter
Official renewal offer from your current lender. -
Recent pay stubs and employment letter
Income documentation if switching lenders (not required for simple renewal). -
Property tax bill
Recent annual property tax statement. -
Proof of property insurance
Current home insurance policy and confirmation of coverage. -
Payout statement from current lender
Required if switching to determine exact payout amount. -
Void cheque for payment setup
Bank account information for new payment arrangements.
3 Shop for Rates
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Get quotes from multiple lenders
Compare rates from at least 3-5 lenders or brokers for best options. -
Compare total costs, not just rates
Consider legal fees, appraisal costs, and other switching expenses. -
Check for prepayment options
Ensure new mortgage allows extra payments or lump-sum contributions. -
Review mortgage features
Payment frequency options, portability, assumability, and other features. -
Negotiate with current lender
Use other offers to negotiate better terms with your existing lender.
Rate Shopping Strategy
Don't focus only on the rate. Consider the total cost of switching, mortgage features, and lender service quality. Sometimes staying with your current lender at a slightly higher rate makes more financial sense.
4 Calculate Switching Costs
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Legal fees for new mortgage
Typically $800-$1,500 for legal representation and document preparation. -
Appraisal costs
Usually $300-$500 if new lender requires property valuation. -
Discharge fees from current lender
Administrative fees to close your existing mortgage (typically $250-$350). -
Title insurance
Protection for lender and borrower (usually $200-$400). -
Calculate break-even point
How long to recover switching costs through lower payments.
5 Decision Making Process
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Compare total 5-year cost
Include all fees, payments, and potential rate changes over the term. -
Consider your future plans
Moving, renovating, or other major changes that might affect your mortgage needs. -
Review lender reputation and service
Consider customer service quality, online tools, and branch accessibility. -
Check mortgage flexibility
Payment change options, skip-a-payment programs, and other features. -
Make your decision
Choose to renew with current lender, switch, or negotiate better terms.
Decision Timeline
Start your renewal process 4-6 months before your current term expires. This gives you time to shop around, gather documents, and negotiate without being rushed into a decision.
6 Complete the Process
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Submit formal application
Complete application with chosen lender with all required documentation. -
Arrange legal representation
Book lawyer or notary to handle mortgage documents and closing. -
Review and sign documents
Carefully review mortgage commitment and all legal documents before signing. -
Set up new payment arrangements
Confirm payment dates, amounts, and automatic withdrawal setup. -
Confirm mortgage details
Verify rate, term, payment amount, and all special features are correct.