The Mortgage Renewal Timeline
120 Days Before Maturity
Start shopping. Most lenders hold rate guarantees for 90-120 days. Getting pre-approved early protects you against rate increases and gives you negotiating leverage.
90 Days Before Maturity
Contact at least 3 lenders (ideally through a broker who contacts 30+). You should have competing offers in hand. Take these to your current lender to negotiate.
60 Days Before Maturity
Negotiate with your current lender. Show them the competing offers. Many banks will match or beat competitor rates to retain you — but only if you ask with real alternatives in hand.
30 Days Before Maturity
Decision deadline. If switching lenders, paperwork typically takes 2-4 weeks. Your new lender handles the transfer — you don't pay a penalty since your term is expiring.
At Maturity
New term begins. If you did nothing, you auto-renewed at whatever rate your bank sent in the mail — possibly 0.5-1.0% above what a broker could have found.
Renewal Savings Calculator
See how much you'd save by getting a better rate at renewal.
Bank Rate Payment
Best Rate Payment
Switching Lenders at Renewal: What You Need to Know
At renewal, switching lenders is straightforward and free. There is no break penalty because your term has ended. The new lender will typically cover legal fees for a straight transfer (no changes to the mortgage amount or amortization). You may need a new property appraisal, but many lenders waive this for renewal transfers.
The only costs you might incur: a discharge fee from your old lender ($300-$400), offset by the fact that most new lenders cover this as part of their "rate hold" package for transfers.
Renewal Negotiation Script
Call your current lender's retention department (not the general mortgage line) and say: "My mortgage is coming up for renewal. I have an offer from [lender] at [rate]. I'd like to stay with you, but I need you to match or beat this. Can you do that?" Then stay quiet. The silence is your friend. They will often come back with a better rate.
If they ask which lender offered you that rate, you don't have to say. If they say they can't match it, thank them and proceed with switching. The cost of switching is nearly zero. The cost of not shopping is potentially tens of thousands of dollars.
Should You Switch Products at Renewal?
Renewal is also the ideal time to reconsider your mortgage structure without penalty:
- Switch from fixed to variable (or vice versa) for free
- Increase or decrease your amortization period
- Add or remove a co-borrower
- Access home equity by refinancing (though this may require going to a lender who allows mid-term equity access)
Renewal Sorted. Now Fix Your Banking Fees.
You just saved thousands on your mortgage renewal. Keep the momentum — eliminate $180-$360/year in bank fees with KOHO. Code 45ET55JSYA = $100 cash bonus.
Get $100 with KOHO