My mortgage is renewing soon — should I stay with my bank or switch lenders?
Tell me your situation — I'll show you the smartest way forward.
Banks follow rules. We structure solutions.
Marissa
Mortgage Advisor · Online now
“Tell me when your renewal is and what your current rate is — I'll show you what's available and what the savings look like.”
Direct Answer
Renewal is the single best opportunity to improve your mortgage — and most Canadians waste it by auto-renewing with their current lender. You can switch lenders at renewal with no penalty. Shopping 90–120 days early gives you the most leverage. The difference between your bank's renewal offer and the best available rate can be $5,000–$15,000 over a 5-year term.
Why This Happens
Banks send renewal letters 30–45 days before your term ends. The offer is rarely their best rate — it's a starting point designed for borrowers who don't shop around. Most Canadians sign and return it without comparing.
The reality: you have the right to switch lenders at renewal with zero penalty. And with 90–120 days of lead time, you can rate-lock and negotiate from a position of strength.
- Banks' renewal offers are rarely their best available rate
- You can switch lenders at renewal with no prepayment penalty
- Shopping 90–120 days early gives you rate-lock protection
- The difference between the best and worst renewal offer can be 0.5–1.5%
- On a $500K mortgage, 1% = $5,000/year in interest
What Your Options Are
At renewal, you have more flexibility than at any other point in your mortgage term.
- Stay and negotiate: Counter your bank's offer with competing quotes. Banks will often match or beat broker rates to retain you.
- Switch lenders: Move to a new lender at renewal — no penalty, no cost. The new lender often covers legal and appraisal fees.
- Refinance at renewal: Access equity, change your amortization, or restructure your mortgage — all without penalty at renewal.
- Change your term: Move from fixed to variable (or vice versa) based on your rate outlook.
What Actually Matters
The most important factors at renewal are: the rate spread between your bank's offer and the market, whether you want to access equity, and whether your financial situation has changed since your last term.
If your income, credit, or property value has changed, renewal is the time to restructure — not mid-term when penalties apply.
- Rate difference between your bank's offer and best available
- Whether you want to access equity (refinance at renewal)
- Fixed vs. variable decision based on current rate environment
- Term length — 1, 2, 3, or 5 years depending on your rate outlook
- Whether your financial situation has improved (may qualify for better products)
When Each Option Makes Sense
Staying with your bank makes sense only if they match the best available rate and you don't need to make any changes. Switching makes sense in almost every other scenario — the process is simple and the savings are real.
Refinancing at renewal makes sense if you need equity access, want to consolidate debt, or want to change your amortization.
- Stay: bank matches best rate, no changes needed, simple situation
- Switch: better rate available, new lender covers costs, straightforward qualification
- Refinance at renewal: equity needed, debt consolidation, amortization change
- Variable: rate cuts expected, short-term horizon, comfortable with fluctuation
- Fixed: rate stability needed, longer horizon, risk-averse
Real Scenarios — Real Outcomes
Homeowner received 5.89% renewal offer from bank, 4 months before renewal date
Switched to monoline lender at 5.14% — saved $3,750/year on $500K mortgage. New lender covered $1,200 in legal fees.
Couple renewing, wanted to access $80K equity for renovation at same time
Refinanced at renewal — no penalty, accessed equity at A-side rate, one clean mortgage.
Self-employed borrower, income improved significantly since last renewal
Switched from B-side to A-side lender at renewal — rate dropped 1.8%, saving $9,000/year.
Scenarios are representative examples. Individual results vary based on qualification, lender criteria, and market conditions.
Why a Broker Changes the Outcome
We compare 30+ lenders at renewal — not just your bank's offer
We negotiate on your behalf — lenders compete for your business
Switching lenders at renewal is free — new lenders often cover legal and appraisal costs
We advise on fixed vs. variable based on current rate environment and your situation
Lender Access
A-Side
Banks & Credit Unions
B-Side
Alternative Lenders
Private
Asset-Based Lenders
Banks only offer their own products. Brokers access all three tiers simultaneously.
The Renewal Rate Math
Your bank's renewal offer: 5.89% on $500K = $29,450/year in interest.
Best available rate through a broker: 5.14% on $500K = $25,700/year in interest.
Annual savings: $3,750. Over a 5-year term: $18,750.
Switching costs: typically $0 — new lender covers legal and appraisal.
Time to shop: 2–3 hours. Return: $18,750. Worth it.
We run this analysis for every client — before recommending any path.
Greenhouse Mortgage is a licensed Ontario brokerage. We present options, not pressure. Our job is to show you the math and let you decide.
Frequently Asked Questions
Yes. Switching lenders at renewal is penalty-free. Your mortgage term ends, and you're free to move to any lender. The new lender often covers legal and appraisal fees as an incentive to win your business.
Talk to Marissa
Mortgage Advisor · Online now · Responds in minutes
Tell me when your renewal is and what your current rate is — I'll show you what's available and what the savings look like.
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