The Cost of Renewing for Canadian Mortgage Holders
Picture of Brianna Frith

Brianna Frith

Author, Founder at Endhome

Homeowners who are coming up for the renewal of their mortgage should shop around for the best deal. This is the first time historically that borrowers can expect to pay higher mortgage payments after paying down their mortgage principal balance over the course of their existing term. The new rate increase may not be the only surprise they find when discussing renewal options with their bank; it’s worth comparing different options to ensure you have secured the best mortgage product for your real estate investment.

Typically, when a mortgage comes up for renewal, borrowers have the option to stay with the same lender at a new lower rate or they can shop around and find a better deal elsewhere.

While renewals can be a good time to shop around for better rates and terms, some people may decide to stick with their existing lender because it’s familiar territory or they have an outstanding balance on their mortgage.

It’s important to consider all factors—including things like your financial situation and any other debts you might have—before making any big decisions about your home loan.

If they do shop around, they must know exactly what they are looking for.


Homeowners with mortgages coming up for renewal this spring must shop around if they want to lock in a good deal. The Bank of Canada has increased interest rates six times since March, and more increases are expected this year.

If you’re planning on renewing your mortgage, here are some things to keep in mind:

  • Know your credit score. It’s important to know how much debt you have, but equally important is knowing what kind of person you are when it comes to managing money and paying bills on time. Your lender will take into account both factors when deciding whether or not it’s willing (and able) to do business with you again.
  • Know how much you owe on your home. The amount by which the value of your home exceeds what is owed on its mortgage is called equity—or “equity cushion,” as one financial expert calls it—and this cushion provides protection against sudden drops in real estate prices so long as there isn’t too much equity built up at any given time relative to the amount owed on their mortgage loan balance (which includes both principal payments made over time plus interest charges). This buffer can help prevent homeowners from defaulting if they happen hit hard times financially due either natural disasters such as fire damage or unexpected job loss during recessions where jobs become scarce; however even then banks may still require additional collateral beyond just homes being used as security before granting new loans despite having such large amounts saved up! So make sure yours aren’t worth more than 20% above current market value before taking out any new loans.

The best advice for any homeowner coming up for renewal is to start shopping around as early as possible.


The best advice for any homeowner coming up for renewal is to start shopping around as early as possible. If you’re not sure where to start, consider the following:

  • Shop around every six months. It’s best to get quotes from different lenders every time your mortgage comes up for renewal, and this can be done by simply calling each lender and asking what their current rates are.
  • Don’t wait until the last minute. Waiting until the last minute may mean that there are no new offers available because other borrowers have been shopping around since before you even knew it was time for your renewal! The only way to make sure that you don’t miss out on new deals is by being proactive and not waiting to the last minute to explore your options.
  • Don’t be afraid ask for a discount or better terms if needed; some companies may offer both these options depending on how much money they want from their customers.”

Know how much you owe on your home, how much it is worth and how often interest rates go up and down in your area.


To get the most out of your mortgage, it’s important to know these things:

  • What is the mortgage rate in your area?
  • How much do you owe on your home?
  • How much is the value of your home?
  • Do interest rates change often in this region?

Homeowners renewing mortgages should hire a mortgage professional to make sure they are getting the best rate.


Before renewing your mortgage, it’s important to shop around and make sure you are getting the best rate. This means contacting mortgage brokers that work on your behalf. A good broker will have access to multiple lenders and be able to find the one who can give you the best deal. Your broker should also know exactly what kind of deal you are looking for before he or she starts shopping around for a new lender—this way, he or she knows what type of mortgage is best suited for your needs and situation.

It pays to shop around for mortgages. Homeowners can save thousands of dollars by comparing rates from different lenders and getting the best deal possible—if you’re willing to do some legwork, that is.

The best approach is simply get quotes every six months or so before your renewal date then compare them with what they will cost at that time. That way, it’s easy to see whether or not refinancing makes sense for you right now.

Another way to protect your investment and stay ahead of the curve is to seek legal advice or have your mortgage documents reviewed by a real estate lawyer. If you are in search of a legal expert to represent you, contact our team at Endhome!