Mortgage Renewal Tips: Locking in at the Right Time

Your mortgage renewal is one of the most important financial decisions you'll make. With rates fluctuating and renewal terms varying, timing your renewal and choosing the right rate can save you thousands of dollars over the life of your mortgage. Many homeowners simply accept their lender's renewal offer without shopping around, but this can be a costly mistake.

Start Early

Most lenders allow you to renew up to 120 days before your term expires. Starting early gives you time to shop around, negotiate, and lock in a rate if you see a good deal. Don't wait until the last minute—rates can change quickly.

Shop Around

Your current lender may not offer the best rate. Here's what to do:

Compare Rates: Get quotes from multiple lenders, including banks, credit unions, and mortgage brokers.
Negotiate: Use competing offers to negotiate with your current lender—they often match or beat competitor rates to keep your business.
Consider Brokers: Mortgage brokers have access to multiple lenders and can often find better rates than you can on your own.
Look Beyond Rate: Consider prepayment privileges, penalty structures, and flexibility when comparing options.

Fixed vs. Variable: Making the Right Choice

Your choice depends on your risk tolerance and market conditions:

Fixed Rates: Provide certainty and protection against rate increases. Best if you prefer predictable payments.
Variable Rates: Often lower initially but fluctuate with prime rate. Can save money if rates stay stable or decline.
Hybrid Options: Some lenders offer convertible mortgages that let you switch from variable to fixed.

When to Lock In

Consider locking in a rate when:

1. Rates are Rising: If you see rates trending upward, locking in can protect you from future increases.

2. You're Close to Renewal: Most lenders offer rate holds for 60-120 days, so lock in when you're within that window.

3. You Find a Great Deal: If you see a rate significantly lower than current market rates, consider locking it in.

4. You Value Certainty: If predictable payments are important, locking in a fixed rate provides peace of mind.

Get Renewal Advice

Expert guidance on timing your renewal and securing the best rates

Renewal coming up?

I can help you compare rates, understand your options, and negotiate the best renewal terms for your situation.

Frequently asked questions

When should I start shopping for my mortgage renewal?

Start shopping 120 days before your renewal date. This gives you time to compare rates, negotiate with lenders, and lock in a rate if you find a good deal. Most lenders allow rate holds for 60-120 days, so you can secure a rate well before your renewal date.

Should I stay with my current lender or switch?

It depends. Your current lender may offer competitive rates to keep your business, but don't assume they'll give you the best deal. Shop around and use competing offers to negotiate. Switching lenders can sometimes save money, but consider any switching costs, legal fees, or penalties involved.

Fixed or variable rate—which is better for renewal?

The best choice depends on your risk tolerance and market conditions. Fixed rates provide certainty and protection against rate increases. Variable rates are often lower initially but fluctuate with the prime rate. Consider your financial situation, how long you plan to stay in the home, and your comfort with payment variability.

Can I negotiate my renewal rate?

Yes! Many lenders are willing to negotiate, especially if you have competing offers. Come prepared with quotes from other lenders, highlight your payment history, and be ready to switch if needed. Lenders often prefer to keep good customers rather than lose them to competitors.