If your mortgage renewal date is creeping up, don’t just sign whatever your lender puts in front of you. A mortgage renewal is your chance to reassess, negotiate, and make sure you’re not paying more than you need to.
This process comes with a few unique considerations for homeowners in Kitchener, Waterloo, and Cambridge. Let’s walk through some useful mortgage renewal tips to help you save money and make smart financial moves.
1. Start Early—Seriously
Don’t wait for your lender’s renewal letter to arrive in the mail. They typically send it about 30 to 60 days before your term expires, but by then, you have little time to negotiate or shop around.
Instead, start looking into your renewal options six months in advance. Many lenders allow you to secure a rate up to 120 days (four months) before your renewal date, protecting you from potential rate hikes while still allowing you to take advantage of lower rates if they drop.
2. Don’t Accept the First Offer
Lenders prefer when borrowers automatically accept renewal offers without question. Why? Because it’s usually not their best rate. Banks and lenders count on borrower inertia—they assume you won’t take the time to negotiate or explore other options. But a little effort can go a long way. Call your lender, ask for a better rate, and don’t be afraid to tell them you’re shopping around. Better yet, call us at The Mortgage Centre, and we’ll handle the negotiations.
3. Compare Rates Like You Would a Car Purchase
Imagine you’re buying a car. Would you walk into the first dealership and pay whatever price they give you? Probably not. Your mortgage renewal deserves the same level of diligence.
Check mortgage rates from the Waterloo Region’s banks, credit unions, and alternative lenders. Working with a mortgage broker can give you a clearer picture of what’s available.
4. Consider a Mortgage Broker
Speaking of brokers—if you don’t have time to compare rates and negotiate, a mortgage broker can do the heavy lifting. They have access to multiple lenders and can often secure better rates than you’d get on your own.
Best of all, their services are usually free because they’re paid by the lender, not you. If you feel your current lender isn’t offering the best deal, a broker can open up your options.
5. Evaluate Your Financial Situation
A lot can change in five years. Maybe your income has increased, maybe you’ve accumulated some debt, or perhaps you’re considering a major expense like home renovations or sending kids to university.
Before renewing, think about whether your current mortgage still fits your financial situation. You might want a shorter term, a different payment structure, or even to refinance and consolidate debt.
6. Fixed vs. Variable: Make an Informed Choice
If you’ve been on a fixed-rate mortgage, you may be tempted to stick with it, but it’s worth re-evaluating. In 2025, interest rates are fluctuating, and the choice between fixed and variable isn’t black and white.
Fixed rates offer stability, but variable rates historically cost less over time. Talk to an expert to see what aligns best with your financial goals and risk tolerance.
7. Check If Your Mortgage Terms Still Work for You
Renewal isn’t just about the rate—you also have the chance to tweak your mortgage terms. Maybe you want to increase your payment frequency to pay off your mortgage faster or make lump sum payments. This is the time to ensure your mortgage is structured to benefit you, not just the lender.
8. Beware of Hidden Fees When Switching Lenders
If you’re considering switching lenders to get a better rate, make sure you understand any costs involved. While most standard renewals don’t come with penalties, there could be appraisal fees, discharge fees, and legal costs when changing lenders. Some lenders will cover these expenses to earn your business, but always confirm this in writing before making a decision.
If you’re considering switching lenders to get a better rate, make sure you understand any costs involved. While most standard renewals don’t come with penalties, there could be appraisal or legal fees when changing lenders. Some lenders will cover these costs to earn your business, so be sure to ask.
9. Lock in a Rate—But Keep Your Options Open
If you find a great rate before your renewal date, consider locking it in. Most lenders allow rate holds for up to 120 days. This protects you from potential increases but still allows you to take advantage of lower rates if they drop before you renew.
10. Leverage Local Expertise
The Waterloo Region housing market has its own dynamics. Mortgage specialists and brokers who understand the local landscape can offer insights that go beyond just numbers. Working with someone who knows the area can help you make more informed decisions.
How Mortgage Centre KW Can Help
Mortgage Centre KW specializes in helping homeowners in Kitchener, Waterloo, and Cambridge get the best mortgage renewal deals. We compare rates from multiple lenders, negotiate on your behalf, and make sure your mortgage aligns with your financial goals.
Review your options and negotiate for the best possible terms to ensure you’re not overpaying. Contact us today to discuss your renewal options and ensure you’re making the smartest move for your financial future.
Mortgage renewals don’t have to be a passive process where you accept whatever’s offered. With a bit of research and negotiation, you can secure better terms and potentially save thousands over the next mortgage term. Start early, compare options, and don’t be afraid to ask questions. Your mortgage is one of your biggest financial commitments—treat it with the attention it deserves.
