How to negotiate a better rate when your mortgage is up for renewal

Valuable tips for negotiating a better rate and conditions when it’s time to renew your mortgage.

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A mortgage renewal can be a challenging task, especially with interest rates on the rise. Like many Canadian homeowners, you may be bracing yourself for payment shocks when it comes time to renew, but that doesn’t mean you have no control over your mortgage agreement. In this article, we provide you with valuable tips on negotiating a better rate and conditions when it’s time to renew your mortgage.

Key highlights

  • Research and compare mortgage conditions, especially those that lenders are less likely to disclose, such as penalty calculations.
  • Get all negotiations and information shared in writing to reference later during the renewal process. 
  • Compare mortgage rates between as many lenders as possible to guarantee you secure the lowest rate available to you.

How to negotiate a better rate when you renew your mortgage

As the maturity date of your mortgage term approaches, it’s important to start thinking about your renewal strategy. Diving into research early is always a good idea, but what should you look for? And if you want to make changes to your mortgage terms, how should you go about it? Here are some key points to keep in mind when negotiating rates and mortgage conditions at renewal time.

At mortgage renewal time, do your research and compare mortgage conditions

When it comes to their mortgage renewal, many people focus solely on the interest rate. While the rate is important, it’s equally crucial to understand the different conditions offered by lenders and brokers. Take the time to thoroughly research and compare what each option brings to the table.

“Always adopt a holistic approach to your mortgage. Understanding every part of your mortgage gives you a clearer picture of what is working for you and what isn’t. This way, you know exactly what to ask about and, more importantly, what to ask for, as no two borrowers’ financial situations are the same,” says Samson Solomon, Mortgage Content Expert at nesto mortgages.

“Lenders don‘t always readily disclose the details, such as penalty calculations, convertibility or portability. Reviewing your mortgage contract and staying informed are your best tools to negotiate better rates and mortgage conditions. “

Get mortgage negotiations in writing and ask the right questions when renewing your mortgage in Canada

Information can easily slip from our minds after a productive meeting.

To avoid this, always communicate through email. This ensures that all parties can refer back to the discussion and connect the details to real-world impacts, such as monthly mortgage payments. Seeing the numbers in writing will help you understand the significance of different rates and terms.

Don’t forget to compare mortgage rates from different lenders at mortgage renewal

While renewing with your current lender may seem convenient, it’s essential to compare mortgage rates from different lenders. 

To ensure you receive the best possible rates and terms, consult a mortgage broker who can provide you with a comprehensive overview of your options. Comparing rates from multiple lenders will give you more bargaining power when negotiating with lenders. Don’t hesitate to seek professional guidance to make an informed decision.

When can I start to negotiate my mortgage renewal?

Your lender will likely send you a renewal notice 30 days before the maturity date of your loan term, but you can start the process yourself approximately 120 days (4 months) before maturity. Marking that day in your calendar is a good idea to guarantee you have ample time to shop around for the best rates and negotiate with lenders, including your current one.

Should I lock in my best renewal mortgage rate sooner rather than later?

Ultimately, timing is going to be your biggest advantage. The sooner you start researching before your renewal, the more time you’ll have to negotiate, secure a lower rate and settle on the mortgage conditions that benefit you and your situation the most.

Get help finding the best mortgage renewal for your situation

Negotiating a better rate when you renew your mortgage requires thorough research, clear communication and professional guidance. Understanding the various conditions offered by lenders, getting negotiations in writing and comparing rates from different lenders will put you in a strong position to secure the best mortgage renewal terms possible.

Remember, your mortgage renewal is an opportunity to reassess your financial situation and make adjustments that align with your current needs. By being proactive and informed, you can save money and set yourself up for a successful mortgage term.

If you’re interested in exploring your mortgage renewal options, talk to your IG Consultant. They can advise you on whether this would fit in with your overall financial plan and can also connect you with an IG Mortgage Advisor, who can advise you on the best mortgage option for your circumstances.

If you don’t have one, you can find an IG Consultant here, and you can also contact an IG Mortgage Advisor here.


Published by IG Wealth Management as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an IG Wealth Management Consultant.

Mortgages are offered by Investors Group Trust Co. Ltd., a federally regulated trust company, and brokered by nesto Inc. Licences: Mortgage Brokerage Ontario #13044, Saskatchewan #316917, New Brunswick #180045101, Nova Scotia #202507230; Mortgage Brokerage Firm Quebec #605058; British Columbia, Alberta, Manitoba, Newfoundland/Labrador, PEI, Yukon, Nunavut, Northwest Territories.

Mortgage advisors are licensed professionals and equivalent to the following titles per province: Sub Mortgage Broker/Mortgage Broker in British Columbia, Mortgage Associate/Mortgage Broker in Alberta, Associate/Mortgage Broker in Saskatchewan, Salesperson/Authorized Official in Manitoba, Mortgage Agent/Mortgage Broker in Ontario, Mortgage Broker in Quebec, Mortgage Associate/Mortgage Broker in New Brunswick, Associate Mortgage Broker/Mortgage Broker in Nova Scotia, or Mortgage Broker in Newfoundland & Labrador. 

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