Guide · Renewals
Most people just sign the renewal letter the bank sends. That's easy — but it usually costs you more than it needs to. This guide explains what's actually going on, and how a little comparison can go a long way.
6 min read · By John Doe
What You'll Learn
Disclaimer: This content is for educational purposes only and should not be considered financial, mortgage, or legal advice. Mortgage programs, rates, and qualification requirements can change. Please consult with a licensed mortgage professional for advice specific to your situation.
Banks know that most people just sign. The renewal letter is a starting point — not the best deal you can get.
On a $600,000 mortgage, even a 0.3% rate difference is roughly $1,800 per year. Renewal offers from your current bank are often 0.2–0.6% higher than what's available elsewhere.
120 days out
Most lenders let you lock in a new rate up to 4 months early. This is a great time to start looking around.
60 days out
Your bank usually sends the renewal letter now. Think of it as one option — not the final answer.
30 days out
Time to decide. Renew with your current lender, or switch. A switch usually takes about 2–4 weeks.
Renewal date
If nothing is signed, many lenders auto-renew you at their posted rate. That can be expensive — so don't let it happen by accident.
1. Get your current numbers
We pull your balance, remaining amortization, and any prepayment options so we're comparing the same thing across lenders.
2. See what's out there
I reach out to multiple lenders and bring back the best overall deal — not just the lowest rate, because terms and flexibility matter too.
3. Use it as leverage
Bring the best offer back to your current lender. They'll often match it or come close. If not, switching is usually straightforward.
4. Pick your term
A 5-year fixed isn't the only choice anymore. Depending on your goals, a shorter fixed term or a variable rate may also be worth considering.
Good to know
If you're doing a straight switch — same balance, same amortization, same property — many lenders no longer require the stress test. That can make switching easier than you might think.
Renewal is the one time you can make changes without paying a penalty. It's worth asking yourself a few questions:
Need lower payments?
Extending your amortization (for example, back to 25 or 30 years) can reduce your monthly payment.
Have extra cash?
A lump-sum prepayment at renewal goes entirely to principal — no penalty.
Carrying other debt?
Renewal can sometimes be paired with a refinance to bring higher-interest debt into the mortgage.
Life changed?
Marriage, separation, adding or removing a co-borrower — these are often easiest to handle at renewal.
For a straight switch at renewal: usually nothing out of pocket. Many new lenders cover the legal and discharge fees as part of their offer.
Always confirm this in writing. A few smaller lenders may not cover everything, so it's good to know upfront.
If you're switching before your renewal date, that's a different story — that's a refinance, and a prepayment penalty would likely apply.
Ready to talk through your specific situation?
See renewal servicesWhy & FAQ
In Summary
Bank renewal offers are often higher than what's available elsewhere.
Start shopping around 120 days before your renewal date.
A straight switch to another lender is usually free and may skip the stress test.
Renewal is the best time to restructure — lower payments, prepay, or consolidate.
Even if you stay with your bank, a competing offer can help you negotiate.
Your Next Step
Send me your renewal date and current rate. I'll bring back a clear side-by-side so you can decide with real numbers — no pressure, no obligation.