Your mortgage renewal is the best opportunity to save money on your largest financial obligation. This checklist ensures you negotiate the best possible rate and terms.
120 Days Before Maturity: Start Shopping
Know Your Current Mortgage
- Confirm your maturity date (check your mortgage statement or online banking)
- Note your current interest rate
- Check your remaining amortization (years left)
- Confirm your outstanding balance
- Review your current prepayment privileges — are you using them?
- Check if your mortgage is insured or uninsured
- Check if your mortgage is a collateral or conventional charge — collateral charges are harder (but not impossible) to switch
Assess Your Financial Situation
- Has your income changed since your last term? (higher = more bargaining power)
- Check your current credit score — has it improved?
- Calculate your current debt service ratios
- Determine your current home equity (how much is your home worth)
- Assess your current LTV — if you have crossed the 80% equity threshold, you have more options
Decide What You Want
- Do you want to keep the same payment, lower it, or increase it to pay off faster?
- Fixed vs variable rate — which suits your current situation?
- Term length: 5-year vs 3-year or shorter?
- Do you want to extend your amortization to lower payments?
- Do you need to access equity (refinance vs straight renewal)?
90 Days Before: Get Competing Offers
Shop the Market
- Contact a mortgage broker — they can shop 30+ lenders for you
- Get a quote from at least one online lender
- Check the best mortgage rates currently available
- For each quote, confirm:
- The exact interest rate
- Whether it is for insured or uninsured mortgages
- The term length
- Prepayment privileges (% lump sum + % payment increase allowed)
- Penalty calculation method (IRD or 3 months’ interest)
- Portability — can you take the mortgage to a new home?
- Is it a collateral or conventional charge?
Documents You May Need (If Switching Lenders)
- Government photo ID
- Recent pay stubs (2–3 months)
- T4 slips and Notice of Assessment (last 2 years)
- Current mortgage statement
- Property tax bill (most recent)
- Proof of home insurance
- If self-employed: T1 General, financial statements, and/or self-employed qualifying documents
Note: If you are doing a straight switch of an uninsured mortgage (no increase in balance or extension of amortization), the stress test no longer applies as of November 2024. This simplifies qualification.
60 Days Before: Negotiate
When Your Current Lender Sends the Renewal Offer
- Do NOT sign it immediately — the first offer is almost never the best rate
- Compare the offer to the competing quotes you have gathered
- Call your lender’s retention department (not the general number)
- Tell them you have better offers and ask them to match or beat
- Negotiate on rate first, then terms (prepayment privileges, penalty structure)
- If the lender matches, get it in writing before committing
Negotiation Strategies
- Lead with your best competing offer — “I have X% from [lender name]”
- Ask for their “best rate” or “retention rate” — different from the posted rate
- If they will not match, ask what they can offer on flexibility (better prepayment privileges, portability)
- Consider the full package: a rate 0.05% higher with better prepayment privileges may save more overall
- See mortgage renewal tips for more tactics
30 Days Before: Make Your Decision
If Staying With Your Current Lender
- Confirm the negotiated rate and terms in writing
- Review the renewal agreement carefully before signing
- Confirm the new payment amount and first payment date
- Check if the amortization is what you expected (it should shorten by the years of the completed term unless you negotiated an extension)
- Set up or update automatic payments for the new amount
If Switching Lenders
- Accept the offer from the new lender
- New lender arranges the transfer (your lawyer handles the legal details)
- Confirm any fees: discharge fee from old lender (~$200–$400), legal/registration fees (~$500–$1,000; often covered by the new lender)
- Review and sign all new mortgage documents
- Confirm the switch date aligns with your maturity date (to avoid early payout penalties)
- Confirm your new payment schedule, amount, and first payment date
- Update your automatic payments
Renewal Day and After
On the Renewal Date
- Confirm the new term has been activated
- Verify the interest rate matches your agreement
- Confirm the mortgage balance and amortization are correct
- Set a calendar reminder for 120 days before the NEXT renewal
Ongoing Optimization
- Review prepayment strategies — are you maximizing annual lump sum and payment increase allowances?
- Consider accelerated bi-weekly payments if not already set up
- Track interest rates — if rates drop significantly mid-term, run the numbers on breaking your mortgage
Payment Shock Quick Check
If you are renewing from a rate that is significantly lower than current rates, estimate the impact:
| Previous Rate | Current Rate (example) | Balance | Old Payment (monthly) | New Payment (monthly) | Increase |
|---|---|---|---|---|---|
| 2.00% | 4.50% | $400,000 | $1,694 | $2,214 | +$520 |
| 2.50% | 4.50% | $400,000 | $1,793 | $2,214 | +$421 |
| 3.00% | 4.50% | $400,000 | $1,893 | $2,214 | +$321 |
If the increase is significant, consider extending your amortization or review our payment shock guide for strategies.
Related Resources
- Mortgage Renewal Guide — Comprehensive renewal guide
- Mortgage Renewal Tips — Negotiation tactics
- Stress Test Changes for Switches — Why switching is easier now
- How to Negotiate Your Mortgage Rate — Negotiation strategies
- Mortgage Comparison Worksheet — Compare offers side by side
- Renewal Calculator — Estimate your new payments