If your mortgage is coming up for renewal, it’s worth pausing before you sign anything. According to Clinton Howell, Broker with RE/MAX Escarpment Realty Inc. Brokerage, this milestone is actually a great excuse to sit down with your realtor first — not just your bank.
Why? Because knowing your home’s current value gives you important context. A quick opinion of value or a comparative market analysis can show you how much equity you have, which can open the door to rebalancing your mortgage, adding a line of credit, or adjusting your loan amount to better fit your goals.
Don’t Just Click “Renew”
Many A lenders, like RBC or Scotiabank, make renewing your mortgage almost too easy — a quick email invites you to pick a 3-year or 5-year term with one click. The problem is that automatic renewal rates are usually retail rates, not the most competitive ones available. Shopping around, even briefly, with another bank or a mortgage broker, can save you a percent or two.
Do a Full Financial Review
Renewing your mortgage is a natural checkpoint to review the parts of your finances you don’t look at daily: your overall debt, credit score, remaining mortgage balance, years left on the loan, and your home’s approximate equity. This bigger picture helps you and your mortgage broker choose a product that actually fits your life, not just the lowest advertised rate.
Think About the Next 3–5 Years
Penalties are tied directly to how much time is left on your term, so your plans matter. If you might sell in the next couple of years, a five-year fixed mortgage could leave you facing a steep penalty — some homeowners have paid $20,000 to $40,000 to break theirs. A variable rate, or a shorter term, might make more sense if a move, downsize, or retirement is on the horizon.
Shop the Mortgage, Not Just the Rate
Beyond the interest rate, look at features like prepayment privileges and portability. Some mortgages let you pay down 15% penalty-free each year, and a portable mortgage can move with you to your next home. As Clinton puts it, fixed versus variable is also worth a real conversation — variable rates tend to win over the long run, even if fixed feels safer in the short term.
Start Early
Clinton recommends starting your research 4–6 months before your renewal date. Many homeowners are renewing mortgages taken out in 2021, when rates were historically low, so higher payments are common this year. If your income and circumstances haven’t changed much, the stress test you passed back then likely means you can handle the new payment. But if your finances have shifted, this is the time to have that conversation — before a higher payment causes real financial strain.
As Dwayne Kavanagh, Mortgage Agent Level 2 with Mission 35 Mortgages, puts it: use your renewal as a full financial checkup, not just a formality.
Bank or Broker?
Whether you work with your existing bank or a mortgage broker is a personal choice. Banks offer continuity if you already have a strong relationship, while brokers can access more than 40 lenders and may find a better fit for your specific circumstances, especially if your income or savings situation is a little outside the box.
Whatever you decide, Clinton’s advice is consistent: don’t just sign the renewal offer that lands in your inbox. A few conversations — with your [realtor](https://www.clintonhowell.ca/clinton-howell/), your mortgage broker, and maybe another lender — could save you thousands and set you up with a mortgage that actually matches your next five years.
Have questions before your renewal date arrives? Check out our FAQ page any time — you don’t need to be buying or selling to ask.
July Market Update
While you’re reviewing your finances, it’s also worth keeping an eye on the local market. Broker Clinton Howell has helped hundreds of buyers purchase homes across Burlington, Waterdown, and Ancaster, and the Clinton Howell team was recently honoured with the BurlingtonToday.com Readers’ Favourite Award for Top Real Estate Team.
If a move is part of your next five years, planning ahead for gifting a down payment or co-signing is another conversation worth having early too.
