When your mortgage term ends, your lender will send a renewal offer. It’s tempting to sign and move on, but renewal is one of the few moments you can switch lenders without a prepayment penalty.
Start early
Give yourself a few months before your maturity date. That leaves time to compare offers, gather documents and, if you switch, let the new lender complete the transfer.
Check your renewal offer
Look beyond the rate:
- Term: how long the new rate and conditions apply.
- Rate type: fixed or variable, and how a variable rate would move.
- Prepayment privileges: how much extra you can pay each year without penalty.
- Penalties: how a penalty is calculated if you break the mortgage early.
Revisit your plans
Your life may have changed since you last signed. Are you planning to move, renovate or pay the mortgage down faster? A shorter term or more flexible prepayment options might suit you better than the lowest rate.
Compare, then decide
A licensed mortgage professional can compare offers from several lenders and explain the full cost of each. Switching involves some paperwork, but the new lender and your mortgage professional typically handle most of it.
Ask every lender for the total cost over the term, not just the rate, and how they’d handle a move or early payout.
Want a second opinion before you sign? Get started with one licensed mortgage professional. No cost, no obligation.
