Renewing your mortgage? Why so many Canadians are anxious (and what to do about it)
If your mortgage is coming up for renewal and you're feeling anxious about it, you're not alone. Industry surveys consistently show that the majority of renewing Canadians report feeling anxious about the process.* But renewal doesn't have to be stressful — in fact, it's one of the best opportunities to save money on your mortgage.
* Source: Canadian mortgage industry surveys — exact figures vary by year and methodology.
Why Canadians are anxious about renewal
- Rate uncertainty: If you locked in during the low-rate era of 2020–2021, you're likely renewing at a higher rate
- Payment shock: Higher rates mean higher monthly payments, and many households are already stretched
- Confusion about options: Most borrowers don't know they can switch lenders at renewal
- Time pressure: Lenders send renewal offers 30–120 days before your term ends, creating a sense of urgency
The biggest renewal mistake
The number one mistake Canadians make at renewal: signing their lender's renewal offer without shopping around.
Your lender's renewal letter is not their best offer. It's their starting point — designed for the customers who don't shop around. Banks count on the fact that most people will just sign and return it because it's easy.
How much can you save by shopping?
On a $400,000 mortgage, even a 0.20% rate difference saves you roughly $4,000–$6,000 over a 5-year term. A mortgage broker can often find a 0.25%–0.50% improvement over your lender's renewal offer — potentially saving you $12,000–$19,000 over the life of the mortgage.
How a mortgage broker helps at renewal
- Shops 30+ lenders to find the best renewal rate for your situation
- Negotiates with your current lender using competing offers as leverage
- Handles the switch if a different lender offers a better deal (switching at renewal is usually free)
- Reviews your overall mortgage structure — term length, payment frequency, prepayment privileges
- Typically costs you nothing — for A lender mortgages, the broker is paid by the lender
When to start
Start shopping for renewal rates 120 days (4 months) before your term ends. Most lenders will guarantee a rate for 120 days, so you can lock in early and benefit if rates drop further before your renewal date.
Next steps
Don't sign your renewal letter without getting at least one competing offer. A 5-minute conversation with a mortgage broker could save you thousands.
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