Mortgage Renewal in 2025: How to Avoid Overpaying and Make the Right Move

If your mortgage is up for renewal this year, you're not alone. A record number of Canadians are in the same boat, and the stakes are higher than ever. With interest rates sitting well above where they were 3 to 5 years ago, your next move could mean paying thousands more than you need to—or saving thousands just by knowing your options.

Here’s what you need to know—and the exact steps to take—to come out ahead.

📌 Why Mortgage Renewals Matter More Than Ever

When your mortgage term ends (typically after 1, 3, or 5 years), your lender will send you a renewal offer. It often looks friendly and official with a nice round rate and a spot to sign. But here’s the truth:

Most lenders don’t offer their best rate upfront.

They’re banking on convenience—knowing most Canadians won’t question it. In fact, about 60% of borrowers renew without negotiating or shopping around. That’s great news for the banks, but not for your bottom line.

💸 How Much Could You Be Leaving on the Table?

Let’s say you’re renewing a $500,000 mortgage. You receive a renewal offer at 4.79%, but a competitive broker-negotiated rate is 3.99%.

That 0.80% difference might not seem like a big deal—but over a 5-year term, it can cost you over $11,000 in additional interest.

💡 That’s real money—money that could’ve gone toward your mortgage principal, your next vacation, a home renovation, or straight into your savings.

✅ Step-by-Step: What to Do When Your Mortgage Is Up for Renewal

Instead of signing blindly, follow these steps to take control:

STEP 1: Know Your Renewal Date

Your current lender will usually send your renewal offer about 30 to 45 days before your mortgage matures—but you can (and should) start shopping 120 days out. That’s your best window to lock in a great rate with no penalty.

STEP 2: Review Your Current Mortgage

Take a moment to assess:

• Has your income, debt, or credit changed?

• Are your financial goals different now than when you first signed?

• Are you happy with your lender's flexibility, service, or features?

Your renewal is a chance to realign your mortgage with your current life—not just your past one.

STEP 3: Compare Options (Don’t Just Ask Your Bank)

Working with a mortgage broker like Swivel means access to dozens of lenders across Canada—including big banks, credit unions, and monoline lenders—not just one option. We’ll do the heavy lifting and present you with the most competitive rates and terms for your unique situation.

STEP 4: Lock in a Rate Early

Once we find a great deal, we can lock in that rate for up to 120 days. That way, you’re protected if rates rise, but still flexible if they drop before your renewal date.

STEP 5: Decide to Stay or Switch

If your current lender steps up and offers a great deal, perfect. If not, switching is straightforward—and in most cases, there are no legal fees or penalties when switching lenders at renewal.

We’ll handle the transition for you from start to finish.

🔍 What If Your Financial Picture Has Changed?

Even if you’ve become self-employed, had a credit blip, or taken on new debt—don’t assume you’re stuck. There are specialized lenders and tailored solutions that may work better for you today than your original mortgage ever did.

This is where a seasoned mortgage broker really shines—we know how to navigate complex situations and uncover opportunities you might not find on your own.

🧠 Smart Renewals Can Also Help You:

• Consolidate higher-interest debt like credit cards

• Refinance for home improvements or investments

• Access equity for other financial goals

• Reduce your monthly payment with better terms

🎯 The Bottom Line

Your mortgage renewal isn’t a routine task—it’s a strategic opportunity.

Signing the first offer you receive might be easier in the moment, but it could cost you thousands in the long run. With a little planning and expert advice, your renewal can become a powerful tool to improve your financial health and save big.

💬 Want a Second Opinion? We’ve Got You.

At Swivel Mortgage Group, we help Ontario and Alberta homeowners navigate renewals with clarity, confidence, and results. Whether it’s your first renewal or your fifth, we’ll walk you through the process step-by-step—and make sure you don’t leave money on the table.

📅 Book your free, no-obligation renewal review today. Let’s make sure your next move is the right one.