5 Key Factors to Review Before Your Mortgage Renewal

Your mortgage renewal isn’t just a formality — it’s a financial pivot point. When your term ends, you have a chance to reassess, optimize, and potentially save thousands. Here’s what smart homeowners evaluate before renewing.

What You Should Review

1. Current interest rates vs your existing rate

   • Market conditions change. What was competitive 5 years ago might be overpriced now.

   • Even a 0.25% difference on a large balance can mean big savings over the next term.

2. Your financial goals & life changes

   • Has your income changed? Do you plan to downsize, renovate, or invest?

   • Are you closer to retirement, considering job changes, or expecting major life events?

3. Amortization remaining & payment flexibility

   • If you have many years left, shorter amortization may speed payoff but raise payments.

   • Check if your next mortgage term allows prepayments, lump sums, or payment relief in tight months.

4. Penalty & switching costs

   • Changing lenders can incur legal, appraisal, or administrative fees.

   • Factor these into your net benefit when comparing offers.

5. Term length & interest rate protection

   • Do you lock in long (5 years) to ride out possible hikes, or pick a shorter term expecting rate drops?

   • Consider hybrid options or variable-fixed blends if your lender offers them.

Consider:

Start comparing your options and getting clear on your goals 4 to 5 months before your renewal date. LaframboiseMortgage.ca can help run side-by-side scenarios so you don’t miss better terms.

Next step: Check your renewal statement now, note your renewal date, and provide this information to us so we can track it and send you reminders when it is time to start talking about options so you save the most money possible!