Should I Stay With My Current Lender at Renewal or Switch?

Short answer: There’s no penalty to switch lenders at the end of your term, and since November 2024 a straight switch (same balance and amortization) doesn’t require the stress test, for insured or uninsured mortgages. Switch if another lender offers a meaningfully better rate or features you need. Stay if your lender matches the market, you value the convenience, or your income makes qualifying elsewhere harder.

What Happens at Renewal?

Your amortization is the total payoff period, usually 25 to 30 years. Your term is your rate contract, usually one to five years. When the term ends, your lender sends an offer and you can accept, negotiate, switch or refinance.

Reasons to Stay

• Convenience: fewer documents and no legal fees if nothing changes
• Service: you like their team, app and other products
• Qualifying: income or credit changes could make switching harder, and your lender offers a fair rate

Reasons to Switch

• Better rate and total cost: even a small difference on a five year term saves thousands
• Better features: more prepayment flexibility, portability, a different penalty structure, or a readvanceable HELOC
• Better service: a team that actually gives advice

Do You Have to Requalify to Switch?

Not for a straight switch. Since November 2024, federally regulated lenders don’t require the stress test when you move the same balance and amortization to a new lender at renewal. Lenders may still apply their own criteria. If you borrow more or extend the amortization, you qualify under current rules.

How to Compare Offers

1. Rate and term length
2. Prepayment privileges (annual lump sums, payment increases)
3. How penalties are calculated
4. Portability and the ability to increase the mortgage if you move
5. Fees: switching can involve appraisal, discharge or legal costs, often covered by the new lender

When Staying Makes Sense

Income or documentation challenges, your lender is at or near the best rate, you value convenience, and the offer fits your plans.

When Switching Makes Sense

A clearly better rate or features elsewhere, you need different prepayment or portability options, poor service, or you want to consolidate debt or restructure.

How We Help

We compare your lender’s offer against the market, check your options with other lenders, and handle the paperwork if you switch. Send us your renewal letter.

This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.