Mortgage Renewal Strategies: How to Negotiate a Better Rate and Save Thousands

Picture this: You’re at your favourite coffee shop, sipping on a perfectly brewed cup of coffee, when your phone dings. It’s an email from your bank.

"Great news! Your mortgage is up for renewal. Just sign here, and you’re good to go!"

Sounds convenient, right? Almost too easy? That’s because it is—but not in a good way.

Most homeowners don’t realize that blindly signing their renewal offer is one of the most expensive mistakes they can make. In fact, with the right strategy, you could save thousands of dollars simply by negotiating or switching lenders. And thanks to recent changes in mortgage legislation, switching has never been easier!

Let’s break down how to negotiate a better mortgage renewal, why you should never take your bank’s first offer, and how switching lenders can put more money in your pocket.

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1. Why You Should Never Accept Your Lender’s First Offer

Let’s be real—your bank isn’t exactly in the business of giving you the best deal possible. Their priority? Keeping you locked in at a rate that makes them the most money.
Here’s why blindly accepting their first offer is a bad move:

Loyalty Doesn’t Pay – Banks rely on you being too busy (or too comfortable) to shop around. They often offer a higher rate, assuming you won’t compare.
No Competition = Higher Rates – Your lender isn’t going to tell you that the competitor down the street has a better offer.
You Lose Negotiation Power – If you don’t push back, you miss out on leveraging other offers to get the best possible rate.

Pro Tip: The renewal offer you receive in the mail is a starting point, not the final deal. You have the power to negotiate!

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2. How to Negotiate a Better Rate at Renewal

Negotiating your renewal isn’t as intimidating as it sounds. Here’s how to take control of the conversation:

A. Start Shopping Around Early
Most lenders send renewal offers about four months before your renewal date. This is your signal to start exploring your options.
Check current mortgage rates with other lenders.
Speak with a mortgage broker (like us at The Mortgage Experts!).
Gather competing offers to use as leverage.

B. Call Your Lender and Push Back
When your lender sends their initial offer, don’t just sign—call them up and say something like:
"I’ve seen better rates elsewhere. Can you match or beat them?"
Lenders do not want to lose your business, and many will lower your rate if they think you might leave.

C. Bring in the Big Guns (A Mortgage Broker)
Brokers have access to multiple lenders and exclusive rates you won’t get by walking into a bank. We do the negotiating for you and can often find better deals than you’d get on your own.

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3. How Switching Lenders Can Save You Thousands

Sometimes, even after negotiating, your current lender won’t offer the best deal. That’s when it’s time to explore switching.
Recent Mortgage Rule Changes: A Game-Changer for Renewals
In the past, switching lenders often meant requalifying under the stress test, making it harder to move to a better lender.
But here’s the good news: Recent changes in mortgage legislation now allow you to switch lenders at renewal WITHOUT having to pass the stress test again!

This means:

✅ Easier approval when switching
✅ More options for securing a lower rate
✅ More power in negotiations

The Cost of Switching (Hint: It’s Usually FREE!)bOne concern homeowners have about switching is the cost—but here’s what most people don’t realize:
Many lenders will cover the fees associated with switching, including:

✅ Legal fees (for transferring the mortgage)
✅ Appraisal costs
✅ Discharge fees from your old lender

So not only do you get a lower rate, but you often don’t pay a dime out of pocket to make the move.

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4. Real-Life Example: How One Homeowner Saved $8,000

Let’s look at a quick example:

Sarah’s Situation:

Her mortgage was up for renewal, and her bank offered a 5.49% fixed rate. Instead of accepting it, she:

-Shopped around and found another lender offering 4.89%.
-Negotiated with her bank, but they wouldn’t match it.
-Switched lenders, taking advantage of the new rules and having her fees covered.

Her Savings Over 5 Years: $8,120 in interest! All from taking 30 minutes to explore her options.

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5. Your Mortgage Renewal Game Plan

Here’s what to do when your renewal is coming up:

Step 1: Check Your Current Rate & Terms
Look at your renewal letter—what’s the rate? The terms? Are there any restrictions?

Step 2: Shop Around for Better Rates
Compare offers from other lenders. A mortgage broker can do this for you in minutes!

Step 3: Negotiate with Your Lender
Use competing offers as leverage. See if your bank will match or beat the best deal you’ve found.

Step 4: Decide Whether to Stay or Switch
If your bank won’t give you a great deal, consider switching—especially now that the stress test doesn’t apply and lenders often cover switching costs!

Step 5: Secure Your Rate & Sign
Lock in the best possible rate and sign your new mortgage with confidence.

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Final Thoughts: Don’t Leave Money on the Table!

Your mortgage renewal is one of the biggest financial opportunities to lower your costs, increase savings, and improve your financial future.

Key Takeaways:

• Never accept your bank’s first renewal offer.
• Negotiate—or let a broker do it for you.
• Switching lenders can save you thousands—and now it’s easier than ever!
• Many lenders will cover your switching costs!

Ready to explore your options? Contact The Mortgage Experts today and let’s make sure you get the best deal possible!