If your mortgage is coming up for renewal in 2026, your bank will send you a renewal letter about 4-6 months before your term expires. It will look simple: just sign here and continue. That is exactly what they want you to do.
The problem? That renewal offer is almost never their best rate. Banks count on inertia — most people just sign because switching feels like too much work. But that convenience could cost you thousands of dollars.
The Real Cost of Auto-Renewing
Let us put real numbers to this. Say your bank offers you 4.89% on a $500,000 mortgage. If a competitor offers 4.49% — a 0.40% difference — here is what that costs you over a 5-year term:
- Monthly savings: approximately $110/month
- Over 5 years: approximately $6,600 in interest saved
- On a $750,000 mortgage, those savings jump to nearly $10,000
When to Start Shopping (Timeline)
The ideal renewal timeline:
- 120 days before expiry: Contact a mortgage broker to start comparing rates. Many lenders offer rate holds for 90-120 days.
- 90 days before: Lock in the best rate available. If rates drop further, your broker can often re-lock at the lower rate.
- 60 days before: Finalize your decision — stay with your current lender or switch.
- 30 days before: Complete the paperwork. If switching, your new lender handles the transition.
- Renewal date: Seamless transition to your new rate and terms.
Switching Lenders Is Easier Than You Think
Many homeowners stay with their bank because they think switching is complicated. In reality, a standard renewal switch involves minimal paperwork, no legal fees in most cases (the new lender often covers them), and no home appraisal required for most straightforward switches.
Your mortgage broker handles all the heavy lifting. You just sign the new documents.
What We Do for Renewal Clients
At Echelon7 Mortgages, we shop your renewal across 30+ lenders to find the absolute best rate. Our service is free to you — the lender pays our fee. Contact us 4-6 months before your renewal date for a free rate comparison.