Services · 04 · Renewal
Your renewal letter is an offer. Compare it.
Renewal is the one time you can change lender, term or payment schedule without a penalty. Start four to six months before the date.
04
What it is
At the end of each term your lender sends a renewal offer. Signing it is easy, and that is one reason the rate in it is often not the lender's best.
I compare that letter with what other lenders will offer on your file, including the cost of moving, and tell you plainly whether to stay, negotiate or switch.
Who it is for
- Anyone with a maturity date in the next six months
- Owners whose payment will rise at renewal
- Owners who want to pay the mortgage down faster, or lower the payment
- Owners who also need extra funds at renewal
How it works
Send the letter
Or just the maturity date, the balance and your current lender.
Compare
Your lender's offer beside others, on the same term and amortization.
Hold a rate
A new lender can hold a rate for you, commonly up to 120 days before maturity.
Stay or switch
If you switch, the new lender pays out the old one on the maturity date.
Documents to have ready
A starting list. Your own checklist is built after the first conversation.
- Renewal letter or a recent mortgage statement
- Property tax bill
- Proof of income
- Home insurance policy
- Government photo ID
Common questions
When should I start?
Four to six months before the maturity date. Many lenders will hold a rate for 120 days, which gives you time to compare before you sign.
Do I have to pass the stress test to switch lenders?
Not for a straight switch, where the balance and amortization stay the same. Insured mortgages were already exempt, and since November 21, 2024 federally regulated lenders no longer have to apply the test to uninsured straight switches. Adding money or extending the amortization brings the test back.
What does switching cost?
Often little. Many lenders cover legal and appraisal costs on a straight switch, and your current lender may charge a discharge fee. I list every cost before you decide.
Should I just sign my lender's letter?
Compare first. The letter is an opening offer. Renewal is also the one time you can change lender, term or payment schedule without a penalty.
Talk it through with Hamed.
Eight questions, about a minute. Hamed reviews your answers and calls you, usually the same business day.