TIME FOR A MORTGAGE RENEWAL? READ THIS FIRST
- johnathanmcquoid
- Jan 17
- 2 min read
If your mortgage is coming up for renewal, do NOT just sign the letter your lender mails you.
Most Canadians leave money on the table without even realizing it.
Here’s what you need to know 👇
📌 Most people renew the wrong way
About 70% of borrowers simply sign their renewal letter without shopping around.
Why is this a problem?
Because lenders know most people won’t look elsewhere — and they DO NOT offer their best rates upfront.
Your lender is a business.
They profit when you don’t negotiate.
💸 How much could you be losing?
Even a small difference in rate can cost a lot over time.
Example:
For every 0.25% difference in rate, payments change by approximately $13 per $100,000 of mortgage.
On a $450,000 mortgage:
✔️ 0.25% higher rate = $936 MORE per year
Are you willing to invest a few hours to save close to $1,000 every year?
Most people would — they just don’t know they can.
🔍 Always explore your options
When your mortgage is up for renewal, you should:
✔️ compare rates
✔️ compare terms
✔️ compare penalties
✔️ compare lender policies
Renewing with your current lender might be the best choice — but you should never assume it is.
🏦 Switching lenders can save money AND unlock equity
Many lenders will cover part of the switching costs — sometimes up to a few thousand dollars — just to earn your business.
This means you can:
✔️ secure a better rate
✔️ save money over the term
✔️ restructure your mortgage
✔️ access home equity if needed
All without paying out of pocket.
💡 Example: Accessing equity during renewal
A client recently renewed and also unlocked their home equity using a HELOC product.
Here’s how it worked:
• Home value: $1,150,000
• Mortgage balance: $445,000
• Max lending limit (80%): $920,000
They chose to:
✔️ keep $445,000 in a mortgage
✔️ unlock $475,000 in available HELOC funds
This gave them access to money for:
• renovations
• emergencies
• investment opportunities
• education costs
(Important note: HELOCs require 20% equity and strong financial discipline.)
⛔ Why planning matters
With ongoing tightening of lending rules, waiting too long can reduce how much equity you can access.
Having a strategy BEFORE your renewal date ensures you don’t miss opportunities — or end up paying more than you should.
💬 Final Thought
When your mortgage comes up for renewal, never assume your lender is giving you the best deal.
Message The Frontline Mortgage Group before you sign anything — we’ll compare your options, review your renewal offer, and make sure you’re getting the best possible outcome. 💬