Renewing Soon? How to Negotiate a Better Mortgage Rate Before It’s Too Late

If your mortgage is coming up for renewal in the next year, now is the time to start planning. Many lenders count on homeowners simply signing the renewal papers without asking questions. But with rates shifting and new options available, that can be a costly mistake.

Here’s how to make sure your next term actually works for you — not just your bank.

Don’t Wait for the Renewal Letter

Most lenders send a renewal offer about 30 to 60 days before your term ends. By then, your negotiating power is limited. Start reviewing your options four to six months before your renewal date. That gives you time to shop around, compare offers, and even hold a new rate if you find something better.

Even a small rate difference can mean real money. On a $500,000 mortgage, saving just 0.25 percent in interest could keep more than $1,000 in your pocket each year.

Don’t Assume Your Bank’s Offer Is the Best

Lenders love loyal customers — especially the quiet ones. Most people accept their first renewal offer because it feels easy, but that convenience often comes at a price. Banks typically start with a higher “posted rate” assuming you won’t negotiate.

Here’s what you can do instead:

• Ask questions: Request your lender’s absolute best rate in writing.

• Get a second opinion: A mortgage broker (like our team) can compare your offer across multiple lenders.

• Leverage competition: If you find a better rate elsewhere, many lenders will match or beat it once they know you’re serious about moving.

A little pushback can go a long way. It’s your money — don’t be shy about protecting it.

Look Beyond the Rate

Yes, the rate matters, but so do the terms. Renewal is your chance to adjust your mortgage to fit your current life, not the one you had five years ago.

Consider whether it makes sense to:

• Switch from a variable to a fixed rate (or vice versa)

• Shorten your amortization to save on long-term interest

• Consolidate high-interest debt using home equity

• Access funds for renovations, education, or investments

Your financial picture has probably changed since you first signed your mortgage. Your renewal should reflect that.

Get Ahead of the Market

In 2025, interest rates are showing signs of softening after several years of hikes. That’s good news, but timing still matters. Holding a rate early can protect you if rates rise again before your renewal date — and if rates drop, you can always switch to the lower one.

Working with a broker gives you that flexibility. We monitor the market daily and can help you secure a rate hold up to 120 days in advance. That means you’re protected no matter which direction rates go next.

The Bottom Line

Your mortgage renewal is one of the easiest opportunities to save money — and one of the most overlooked. Don’t sign that renewal letter without seeing what else is possible.

If your mortgage is renewing soon, talk to us. We’ll compare your options, negotiate on your behalf, and make sure your next term is built to fit your life, not just your lender’s offer.