Mortgage Renewal Options

Most homeowners choose to stay with their current mortgage lender because they think that the mortgage renewal in Ontario for a lower mortgage rate is too difficult and too time consuming.

If your mortgage renewal in Ontario is fast approaching, then now is the perfect time to take a look at various excellent options and low mortgage rates available. Generally, lenders send out renewal offers right before the renewal dates, and approximately 70% of homeowners send the forms back without asking any questions! In today’s fast-paced world, this could be the best and easiest route, but it is important to ask yourself a few questions before signing on the dotted line. This is a moment of opportunity. This is where an independent mortgage broker like myself can offer you advice and outline your options for a mortgage switch in Ontario to help you get ahead and save money!

Mortgage Renewal in Ontario: Step by Step

When your mortgage term comes to an end, if you still owe a balance, you will be required to renew your mortgage in Ontario for another term. If you want to ensure that all your financial goals are met, I recommend taking a proactive approach to the mortgage renewal process in Ontario.

The entire mortgage renewal process in Ontario involves the following steps:

  • Start searching 4 months prior to the end of your mortgage term.
  • Think about your financial goals.
  • Outline your mortgage needs and requirements.
  • Prepare to renew in the last 30 days.
  • Make a decision.

Each mortgage renewal in Ontario presents an opportunity to reassess your current mortgage rates and conditions and compare them to your financial plans and goals. You could simply sign and send back the renewal slip that your mortgage provider sent you, but, if you want to ensure to get the best mortgage renewal rates in Ontario, you should consult your mortgage broker at KeyRate Mortgage.

1. Start Shopping 4 Months Before Your Term is Up

Check the maturity date of your current mortgage and mark it on the calendar. Then, count 120 days (or approximately 4 months) back and mark the date as well. This is the date that most lenders will allow you to begin the early mortgage renewal in Ontario, which means that you could renew every year with your current mortgage lender without paying a prepayment penalty for breaking the mortgage term yearly. Even if you are not ready to go over the mortgage with your mortgage broker or lender on this day, you can start looking into various options online. Once you find out which lenders offer what prepayment options, lower or higher rates, and other terms, you will be better prepared to negotiate once you are ready to renew.

2. Consider Your Financial Goals

Mortgage Renewal Process Ottawa | Mortgage Broker OttawaLet’s be honest: many things might have happened since you were buying a home for the first time. As a result, the financial goals you had at the beginning of your current turn may no longer align with your financial goals today. Maybe, you received a significant raise at work, or, on the opposite, lost income or even retired. You could have had a baby or two, or may need to pay the university tuition for your child. If there is a possibility that you will need to move within the next 5 years, this should be also considered when making a decision. Keep in mind the possibility of accessing some home price and home equity as well. Whatever your needs and requirements are, you should consider them carefully when selecting mortgage rates and terms. 

3. Outline Your Mortgage Needs

During the mortgage renewal in Ontario, alongside with your general financial goals, you should think carefully about what you are searching for in a mortgage product.

To begin with, ask yourself these questions:

  • Do you believe you will receive any inheritances or bonuses that you can use towards your mortgage? If so, review the lump sum prepayment option.
  • Does your monthly budget allow to increase the amount of your mortgage payment? If so, consider the options for monthly prepayments in the terms and conditions.
  • Do you think you will need to borrow additional money from the lender during the next term? If so, think about the prepayment penalties for a refinance, or consider a collateral charge instead.
  • Do you believe you will be able to pay off the outstanding balance of your existing mortgage completely during the following term? If so, review the prepayment penalties associated with variable rate vs. fixed rate mortgages.
  • Is there a chance that you will be moving and/or selling your house in the next 5 years? If so, you may need a portable or assumable mortgage

4. Be Ready to Renew in the Last 30 Days

According to law, your current lender is required to send you a mortgage renewal slip minimum 21 days prior to the end of the term, but they will normally send you a renewal offer for the lowest posted rate 30 days before your term is up. By extending the offer for 30 days, you can avoid any potential increases in rate during that time. However, at this point, you should have done enough research to know whether it is the best mortgage rate offered on the market. If not, you have the right to negotiate! However, even if you do sit down with your mortgage lender to negotiate, it is not likely that they will give you the lowest rate indeed. Therefore, in your last 30 days, you should make an appointment with your mortgage broker to discuss and see what other lenders have to offer.

5. Make a Decision

After doing your research, outlining your financial goals and mortgage needs and getting a mortgage renewal offer from the current lender, it is time to make an informed decision. The most important question you need to ask yourself is who is offering the lowest mortgage rate and best mortgage product: your current lender or somebody else? If you do decide to stay with your lender, you can either sign and return the mortgage slip, or sit down in their office in an attempt to negotiate a better offer.

If you decide to switch lenders, a little more paperwork will be required, but doing so will give you the best mortgage rates in Ontario. Be prepared to submit a new application for mortgage, as the new lender might have different qualifying criteria. There may also be some fees involved with switching providers, including the appraisal fee for the verification of the property’s value, a discharge fee, an assignment fee, and some legal fees.

Why Choose KeyRate for Mortgage Renewal Process in Ontario?

Is your mortgage renewal in Ontario approaching? This is your time to make a decision. For example, you may want to access some of your home equity for a home improvement project or consolidate higher interest debt together with your mortgage. Or, maybe, you are rethinking a vacation property or a cottage. Can you be sure you will receive the best rate at renewal?

When you have multiple lenders compete for business with you, you can be sure to receive the best interest rate for your situation. I deal with a large number of financial institutions, such as major banks, trusts, credit unions, and other regional and national lenders, which means great negotiation power to find the best mortgage to fit your individual situation.

Call or email at for full details about the mortgage renewal process in Ontario and a FAST mortgage pre-approval!

What's Next?

We also offer:

  • Mortgage renewal in Ottawa
  • Mortgage renewal in Vancouver
  • Mortgage renewal in Victoria
  • Mortgage renewal in Calgary

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