Top Mortgage Renewal Mistakes Homeowners Make in Canada

Short answer: The biggest renewal mistakes are signing the first offer, focusing only on rate, ignoring cash flow and other debts, not considering a switch, and leaving it to the last minute. Start four to six months early and compare offers through a broker.

Mistake 1: Signing the First Offer

First offers are often convenience rates. They may not reflect your improved credit or equity, or what other lenders would offer. Treat the letter as a starting point.

Mistake 2: Only Thinking About the Rate

A low rate can come with a harsh penalty, limited prepayment options or a term that doesn’t match upcoming life events. Example: a low fixed rate with a big IRD penalty is a poor fit if you might move, separate or refinance before the term ends. Match your mortgage to the next three to five years.

Mistake 3: Ignoring Cash Flow and Other Debts

If you carry credit cards, lines of credit, car or personal loans, renewal is a chance to restructure. List your debts and talk about consolidation.

Mistake 4: Not Considering a Switch

A straight switch at renewal is usually simple and low cost, and since November 2024 doesn’t require the stress test. Staying by default can mean a higher rate than necessary or missing a lender that fits your profile better. Ask: if I were choosing today, would I pick this lender?

Mistake 5: Leaving It to the Last Minute

Less time means less leverage and more pressure to accept a mediocre offer. Set a reminder six to twelve months out and start four to six months before your term ends.

Bonus: Not Getting Advice

Renewal affects your cash flow, flexibility, total interest and ability to adapt. A quick conversation can reveal options you didn’t know you had.

How We Help

We review your renewal offer, compare it to the market and explain your options clearly. Send us your renewal letter or book a call.

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.