Our advice is free, and we quickly outline your renewal details to make your decision easier.
If you decide to make a change or to transfer to another lender, you may need an appraisal or extra paper work done.
Or, there may be pre-payment penalties that you haven't been made aware of. We know the drill, and we're here every step of the way to make your decisions as stress-free and transparent as possible.
You don't need to wait for your bank renewal statement to explore your options.
Your lender may send a renewal offer early. Or, they may not.
Legally, your lender has to send your renewal statement at least 21 days before your mortgage term ends. However, you need about a month to research your options and ensure enough time for your process if you decide to switch or refinance.
Ask your lender for their best offer.
Even if they've provided an early renewal offer, be confident about your right to go back to them to see if they can do better on their best rate or mortgage product.
Contact us for all your options, at no cost or obligation.
- We may be able to beat your lender's rate.
- We can help you decide on a better mortgage fit to address your changing needs — for example, higher pre-payment room, the ability to recast your payments or port your mortgage.
- Your current lender's rep may have limited info on certain goals, such as buying a second home or investment property
- Have complex mortgage details or need a short-term mortgage solution to get you out of a jam? We have more flexibility than a big bank.
- We help ensure you have all the information available to make the best decision for your mortgage renewal or transfer.
Insured and uninsured mortgages can often forego the stress test at renewal.
When purchasing a home, your mortgage is qualified through the federal stress test, which looks at your ability to afford mortgage payments if rates go up to 5.25% or by another 2.0% (whichever is greater).
To stay with your current lender at renewal, you won't be re-qualified through the stress test (unless you request a refinance).
Recent mortgage rule changes mean that most mortgages can now switch lenders at renewal and qualify using the contract rate instead of the higher federal stress test rate — giving those homeowners the ability to shop around for a better deal.
Thinking about a REALLY early renewal?
If you have a year or two left on your mortgage term, but see prices going up or down, you may not want to wait for your renewal period.
That means breaking your mortgage term early, and likely paying penalties or fees (depending on your product or lender), in order to lock in a different rate for another full term.
If rates are going up or down quickly, we can run the numbers to see if an early break would make (savings) sense in your situation.
What is your renewal process?
Staying with your current lender — without shopping around — can be a simple renewal process:
- Click on your online renewal offer or indicate to your bank rep that you want to accept for another term.
- The lender will send your renewal contract to sign.
- The new mortgage rate and payment will likely come into effect for your next regular payment date.
- An interest adjustment may affect your first payment to address the 'before' and 'after' rates, or based on renewal timing.
Shopping around after getting your first renewal offer:
- Contact a highly trained True North Mortgage broker
- You'll provide details about your current mortgage, financial situation, and future goals
- Your broker will quickly search the lenders and products to outline your best rates and options
Here's how the renewal switch process can work:
- Once you choose your new lender, your expert broker gathers the docs and details and submits your application.
- The new lender may use or require different details from your previous lender to approve your mortgage.
- When approved, you'll sign the mortgage commitment.
- A lawyer or title company (like FCT) will take care of transferring your mortgage title (broker facilitated).
- Your broker receives word when the new lender pays out the mortgage to the old lender and informs you when the process is complete.
- You'll likely receive a welcome package from the new lender, along with a contact for mortgage servicing.
- First mortgage payment may reflect an interest adjustment.
- Your broker can also help answer any questions you may have about your new mortgage.
We put your renewal through bootcamp.
Our expert, salaried (non-commissioned) brokers put you first, not the lender. We're here to give you options, so that you can make clearer decisions on whether to switch or stay, and to get your best possible mortgage solution.
Did your lender's renewal option skip the gym? Get our unbiased mortgage help anywhere in Canada — online, by email, over the phone, through Morgan (our chatbot), or at one of our store locations.
