Mortgage Switch and Renewal

Mortgage Switch and Renewal: A Complete Guide for Canadians

The mortgage renewal process often surprises many Canadians. As the renewal date approaches, the temptation to accept the current conditions and simply renew is strong. However, fluctuating interest rates can make this less advantageous.

With the right mortgage renewal tips, you have the option to switch lenders or negotiate better terms with your current lender. While some banks provide renewal details up to six months in advance, others wait until just 21 days before the term ends, as mandated by Canadian regulations.

TABLE OF CONTENTS

  • What is the Mortgage Renewal Process?
  • What Are Your Options When it Comes to a Mortgage Renewal?
  • Mortgage Renewal vs Refinance – What’s the Difference?
  • Choosing Another Mortgage Lender – What do the Big Banks Offer?
  • CIBC Mortgage Renewal
  • RBC Mortgage Renewal
  • TD Mortgage Renewal Rates
  • Renewing a Mortgage Early
  • What to Do When Receiving a Mortgage Renewal Denied Notice
  • Mortgage Coming Up for Renewal? Keep These Mortgage Renewal Tips in Mind

    What is the Mortgage Renewal Process?

    The five-year fixed-rate mortgage is highly popular in Canada. Most borrowers cannot fully pay off their homes within this timeframe, leading to the mortgage renewal process. This allows borrowers to sign for a new term, often under different conditions. Changes in interest rates during the term may present better options.

    The first step involves receiving your renewal statement. This document outlines your current mortgage terms adjusted for the new term.

    Before you sign a renewal offer, keep the following mortgage renewal tips in mind:

    • Can you afford to pay off your mortgage faster by increasing your repayments? A renewal with higher repayments will mean you pay less interest over the lifetime of the mortgage.
    • You can change to bi-weekly payments if you’re currently paying monthly. This could allow you to better manage your finances and avoid missed payments.
    • Has your lender delivered good customer service? If you aren’t happy with your lender for any reason, then you can consider switching banks mortgage.
    • Your current lender is required to provide renewal details, but they don’t have to offer any advanced mortgage renewal advice and tips. Ultimately, they are looking out for their own commercial interests and financial bottom line. If you want impartial advice and the best possible mortgage for your needs, you need to know how to switch mortgage providers.

    Working with a mortgage broker will ensure that you get the best mortgage renewal rates in Ontario. You will get tailored advice based on your unique needs and financial situation. Most importantly, a broker will find renewal options from different banks and private lenders so that you have freedom of choice.

    Exploring the market alone would take countless hours of research, emails, and time on the phone. A broker takes care of the legwork to make mortgage renewal in Ontario simple. Take note when it’s time for your mortgage coming up for renewal. Contact us today for your free consultation.

    Mortgage Renewal vs Refinance – What’s the Difference?

    If this is your first time going through the mortgage renewal process, you will likely have some important questions, such as mortgage renewal vs refinance, what’s the difference? Although similar on the surface, these processes serve slightly different functions.

    The mortgage renewal process is essential for transitioning from one loan term to another. After the initial term, you will still owe money on your home, and renewal allows you to continue paying off your home with the same lender. If you stay with your lender, you won’t need to worry about mortgage renewal vs refinance. However, if you plan to change lenders, there’s more to consider.

    Refinancing occurs during a loan term and involves switching to a new loan that offers better conditions and lower rates. It can be seen as an early form of mortgage renewal. Sticking with the same bank or lender often helps avoid hefty penalties. However, if you refinance and switch away from your current lender, additional fees may apply.

    Renewal is mandatory at the end of the term, while refinancing is typically voluntary. Understanding mortgage renewal vs refinance helps you navigate the mortgage renewal process more effectively.

    Renewing a Mortgage Early

    Mortgage rates are volatile, whether comparing TD mortgage renewal rates or private lender rates in Ontario. While fixed-rate mortgages offer temporary protection, consider early mortgage renewal if your “mortgage coming up for renewal” is months away.

    Knowing how to switch mortgage providers is straightforward with a broker specializing in FSCO mortgage agent renewals. They’ll explore offers from private and major lenders, tailored to your profile for the best mortgage renewal options in Ontario.

    Early mortgage renewal incurs costs, so weigh the benefits carefully. It’s similar to refinancing, involving breaking your current contract to start afresh with a preferred provider. Some banks, like RBC, impose hefty switch-out fees.

    Avoid penalties by renewing early with your current lender. They may even offer financial incentives, retaining you as a customer and avoiding the hassle of switching banks.

    Evaluate if breaking your mortgage agreement early is worthwhile with our early mortgage renewal brokerage. Assess potential savings or losses by switching lenders.

    Changing mortgage providers is a major decision; ensure you have comprehensive information from an Ontario mortgage renewal broker.

Mortgage renewal is an opportunity to find a better deal. Our brokerage will ensure that your next mortgage is the best yet. For more mortgage renewal advice and tips, we welcome you to contact us.

Lowest Residential Mortgage Rates in Canada*

Term OUR RATE
3 Year Fixed/ 25 yrs 4.99%Promo
4 Year Fixed/25 yrs 5.04% Promo
5 Year Fixed/ 25 yrs 4.69% Promo
5 Year Variable/ 25 yrs 5.95% Promo
5 Year Fixed/ 30 yrs 4.89% Promo
5 Year Variable/30 yr 6.24%
3 Year Fixed/30yr 5.09% Promo
**NEW RENTAL 5 Year Fixed /30yr 5.09% Promo

Updated: July 07 , 2024

* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion.Some condition may apply.Rates may vary between geographic regions and the posted rates on this website may not be available in your area.TD Bank rate used for comparable are the rate listed in the Broker Chanel Portal by TD Canada Bank at the date above. Please contact our MCI office for more details and current promotions.

LOWEST REGULAR RATES IN CANADA*   * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.

Contact Us

    Fields with (*) are required

    Accept the terms and conditions.

    contact us