Broker vs. Bank / Lenders / Mortgage Renewal / mortgage rule changes / payout penalty / prime rate / Qualifying / Rates & Terms / Rules / Uncategorized

Should I renew my Mortgage early?


Is your mortgage due for renewal sometime within the next year? Has your current lender called you or sent an offering of a one-time chance to “renew early and save” or some similar wording? With relatively low interest rates still available, it may be a good idea to renew your mortgage early and take advantage of the savings, however, before you sign on the dotted line, make sure you speak with an expert and find out what your options are.

Can you save by renewing early?

What does it mean to renew early? Your lender may allow you to lock in today at the current rates rather than wait until your scheduled renewal date when rates may have increased. If you renew with the same financial institution that currently holds your mortgage, you can essentially break your existing term without any penalty and start making payments at the lower rate. However, if you break your mortgage term early and want to switch to another lender you will be charged a payout penalty as the early renewal option is only available if you keep your mortgage where it already is at.

Thinking of breaking your mortgage term early? Use our Early Renewal Calculator to see how much you can expect to pay.

Let’s say you owe $400,000 on your current mortgage and it’s at a five-year rate of 3.39%. If you early renewed at a rate of 2.74% before your mortgage term expires, want to know how much money would you save? Go to the website and check out the different calculators to see what a difference it makes OR better yet, contact the MortgageGirl directly and get her to run the numbers for you.

Look beyond your renewal letter

Your current lender isn’t offering you the option of early renewing to save you money, they are doing what they can to prevent you from shopping around for a better deal at your renewal date. No time is better to make some inquiries to see what else is available for you.

Most lenders will offer to hold a rate for as long as 90-120 days for new borrowers. That means once you are quoted a rate by a new lender, you can have that rate as long as you sign a contract before the end of that time period. If the interest rates happen to drop during that period, you’ll receive the lower rate.

It’s worth knowing what your options are and it’s important to be aware due to recent mortgage rule changes, the rate you are eligible for will now depend on whether your mortgage is insured or conventional and what your loan to value is at.

Meet with a Mortgage Broker

Mortgage Brokers often get better rates than their banker counterparts. If you do want to know what your best rate is, contact the MortgageGirl and find out what products and rate specials are available to you. Again, please keep in mind that the rate specials you see advertised may not be for you based on your mortgage type and financial profile.

In its annual Mortgage Consumer Survey, Canada Mortgage and Housing Corporation found that slightly more than half of respondents simply took the first offer the bank made them. Do you want to be spending more on your mortgage than you need to?

Wondering if renewing early to get a better rate is the right move for you? Contact a 35 year Mortgage Specialist, Jackie Woodward, The MortgageGirlca. Website:, Call: 780-433-8412 email:, Twitter or Facebook.

One thought on “Should I renew my Mortgage early?

  1. Pingback: Mortgage due for renewal soon? Do you stay or do you go? |

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