How to Renew a Mortgage

Although you can have your mortgage amortized over several decades in Canada, you must renew or refinance every few years because the average mortgage rate term is five years or less. On the one hand, this may seem terribly inconvenient because you will go through the mortgage approval process several times over the course of your loan’s amortization. Frequent refinancing, on the other hand, means that you have the chance every few years to secure better rate and payment terms for your loan.

In any case, it is important to be prepared for your mortgage renewal when the time comes. You might even say that preparation pays, for you will enjoy greater savings if you take the time to do the research you need to enjoy an affordable mortgage renewal. What do you need to do to renew a mortgage? Read on to find out.

Compare Interest Rates

You will want to get an apples-to-apples comparison of mortgage rates that looks at the same loan product from several different lending institutions. This will help you pick the best rate or narrow down your options to a few lenders. Comparing rates ahead of time makes it easier to renew your loan when the renewal date rolls around.

Barter with Your Bank

Generally speaking, banks have an interest in keeping their existing customers. If you are pleased with your current lender but have found a lower mortgage interest rate elsewhere, bring that rate to your bank to see if your bank will match it. Even if the bank cannot exactly match the more affordable rate, odds are good that you will get them to lower the rate they are offering by a few percentage points or part thereof.

Get Your Mortgage Documents Ready

When you are applying for a new loan, the lender will require several documents form you to prove your income and creditworthiness. These documents include tax returns, a letter of employment and many more. Start gathering these documents several weeks before your renewal date so that you are not scrambling to find them at the last minute. You can access a list of the documents you will need on our mortgage documents checklist page.

View the Process Appropriately

If you look at preparing for a mortgage renewal as a waste of time, you will be disinclined to take all the necessary steps, and you will lose money to a higher interest rate that took less time to locate. It is better to view preparation for a mortgage renewal as an investment. Take the time now to do it right, and it will pay off for years to come.

Get Outside Help

Few homeowners are mortgage experts, and fewer still have the time to do as thorough research as possible into mortgage rates and terms before their loans renew. If you fall into either category, you can get a professional to do the hard work for you when you choose a Canadian mortgage broker. A broker will walk you through the loan process every step of the way to get the best deal.


Following these few basic steps will help you tremendously with your mortgage renewal. As always, you can also click on any of the lenders or brokers on this site for more information on their renewal loan rates and products.