Mortgage Renewal Ontario: Don’t Sign That Letter Until You Read This (2025)
Your mortgage renewal in Ontario is coming up and that letter just arrived from your bank. It looks simple enough—just sign and return. But before you do, consider this: most Canadians leave thousands of dollars on the table by simply accepting their bank’s renewal offer. Here’s why talking to a mortgage broker first could be the smartest 15 minutes you’ll spend this year.
The Costly Mortgage Renewal Mistake Most Ontario Homeowners Make
Banks count on one thing at renewal time: your inertia. They know that most people will glance at the renewal letter, think “that rate looks okay,” and sign it without shopping around.
Here’s what the banks don’t tell you about your mortgage renewal in Ontario:
- The rate on your renewal letter is almost never their best rate
- You have negotiating power—they don’t want to lose you
- Other lenders may offer significantly better terms
- Switching lenders at renewal is often free and easy
The reality: I regularly find clients rates 0.3% to 0.7% lower than their bank’s initial mortgage renewal offer in Ontario. On a $500,000 mortgage, that’s $1,500 to $3,500 in savings per year—or $7,500 to $17,500 over a 5-year term.
Why Talk to a Mortgage Broker Before Your Ontario Mortgage Renewal
1. We See the Whole Market—Your Bank Doesn’t
Your bank can only offer you their products. As a mortgage broker serving Milton and the GTA, I have access to over 50 lenders—major banks, credit unions, monoline lenders, and alternative lenders. I can compare your bank’s offer against dozens of competitors in minutes.
Often, the best rates come from lenders you’ve never heard of. Monoline lenders (companies that only do mortgages) frequently beat the big banks because mortgages are their entire business.
2. It Costs You Nothing
Here’s what surprises most people: my services are free to you. Lenders pay my fee when your mortgage closes. There’s literally no downside to getting a second opinion on your mortgage renewal in Ontario.
Think of it this way: Would you buy a car without comparing prices? Would you accept the first salary offer without negotiating? Your mortgage is likely your largest financial commitment—it deserves at least 15 minutes of comparison shopping.
3. Switching Lenders at Renewal is Easy
Many homeowners assume switching lenders is complicated or expensive. At renewal, it’s neither:
- No penalty – You’re at the end of your term
- Minimal paperwork – Similar to your original application
- Often no cost – Many lenders cover legal and appraisal fees
- No stress – I handle the entire process for you
The only time switching has costs is if you’re breaking your mortgage early (before renewal). At renewal, you’re free to move. Learn more about mortgage refinancing options if you need to access equity at the same time.
4. Your Situation May Have Changed
A lot can happen in 5 years. Maybe you’ve:
- Improved your credit score (qualify for better rates)
- Increased your income (more options available)
- Paid down debt (better debt ratios)
- Built significant equity (access to better products)
- Changed jobs or become self-employed (need different lender)
- Gone through a divorce (need to restructure)
A broker looks at your complete picture and finds the best solution for who you are today—not who you were 5 years ago.
5. We Can Negotiate on Your Behalf
Even if you decide to stay with your current lender, knowing what competitors are offering gives you leverage. I can tell you exactly what rate you should be asking for—and often, your bank will match it rather than lose your business.
What to Consider at Mortgage Renewal Time in Ontario
Renewal isn’t just about the rate. Here are other factors worth evaluating:
Fixed vs. Variable Rate
Interest rate trends change. What made sense 5 years ago might not be the best choice today. I’ll help you understand the current rate environment and which option aligns with your risk tolerance and plans. Check the Bank of Canada’s current interest rates for reference.
Term Length
Most Canadians default to a 5-year term, but is that right for you? If you might move in 3 years, a shorter term could save you from penalties. If you value stability, locking in longer might make sense.
Prepayment Privileges
Can you make lump sum payments? Increase your regular payments? These features vary by lender and can save you thousands in interest if you use them.
Portability
If you might move during your term, portability lets you transfer your mortgage to a new property without penalty. Not all mortgages have this feature.
Penalty Structure
Life is unpredictable. If you need to break your mortgage early, some lenders have much more favorable penalty calculations than others. This often-overlooked factor can save (or cost) you thousands.
The Mortgage Renewal Ontario Timeline: When to Start
Most lenders send renewal offers 4-6 months before your term ends. Here’s your ideal timeline:
| Timeline | Action |
|---|---|
| 4-6 months before renewal | Contact a mortgage broker |
| 4 months before | Review options, lock in a rate if favorable |
| 2-3 months before | Make your decision, submit application if switching |
| 1 month before | Complete paperwork, prepare for closing |
| Renewal date | New mortgage begins seamlessly |
Pro tip: Most rate holds are valid for 120 days. Starting early lets you lock in a good rate while continuing to watch for better offers.
Real Ontario Mortgage Renewal Success Stories
“I Almost Signed Without Checking”
A client in Mississauga received a renewal offer at 5.89%. She almost signed it—the rate seemed reasonable. One phone call to me, and we found her 5.24% with a different lender. On her $480,000 mortgage, that’s saving her over $3,100 per year.
“My Bank Suddenly Found a Better Rate”
A Milton homeowner wanted to stay with his bank for convenience. I showed him competitor offers at 0.45% lower. He called his bank, mentioned the competing offers, and they matched the rate within an hour. Same bank, same convenience—$2,000+ saved annually.
Frequently Asked Questions About Mortgage Renewal in Ontario
Do I have to switch lenders to get a better rate?
Not always. Sometimes your current lender will match competitor rates to keep your business. But you won’t know unless you have competing offers in hand.
Is there a penalty for switching at renewal?
No. When your term ends, you’re free to go to any lender without penalty. Penalties only apply if you break your mortgage before the term ends.
What if my home value has dropped?
If you’re staying with your current lender, they typically won’t re-appraise. If you’re switching, the new lender will assess your property—but as long as you’re not trying to borrow more, this usually isn’t an issue.
Can I refinance at the same time as my mortgage renewal in Ontario?
Absolutely. Renewal is actually the perfect time to refinance your mortgage if you want to access equity, consolidate debt, or change your mortgage amount. Since you’re at the end of your term, there’s no penalty.
What documents do I need?
For a straightforward renewal or switch, you’ll typically need:
- Recent pay stubs
- Letter of employment
- Latest mortgage statement
- Government ID
If you’re refinancing, we may need additional documents. Contact me to discuss your specific situation.
The Bottom Line: Your Mortgage Renewal in Ontario Deserves 15 Minutes
Your mortgage renewal is one of the few times you have complete freedom to shop around without penalty. Don’t waste this opportunity by automatically signing your bank’s offer.
A quick conversation with a mortgage broker costs you nothing but could save you thousands. Even if you end up staying with your current lender, you’ll have the peace of mind knowing you got the best deal available.
When does your mortgage renew? Let’s talk before you sign anything.
Serving homeowners in Milton, Oakville, Burlington, Mississauga, Brampton, and throughout the GTA.
Carl Zuzart is a licensed mortgage broker (License #M25001564) with Pineapple Mortgages, serving the Greater Toronto Area. Have questions? Call 289-298-2989 or email mortgages@zuzart.ca.
