Mortgage renewal
Your renewal letter is an opening position.
The highest value decision in the mortgage journey, and the one most people spend the least time on. Signing the renewal letter your lender sends is a choice, and it is rarely the best one available to you.
We price staying against switching, net of every cost, and tell you which one wins. If your existing lender is the better deal, we say so.
Licensed in Ontario (FSRA #13321) and Alberta (RECA). No cost to talk, no obligation.
What we hand you
One number: what staying costs you over the next term, against what moving costs you, with the discharge and registration work already priced in.
45+
Lenders compared
1 yr
When to start
24 hr
Commitment guarantee
On most standard residential mortgages the lender pays the brokerage, so this usually costs you nothing.
The decision
Signing the letter is a choice, and doing nothing is also a choice.
What you pay for the next term, and whether you had anywhere else to go when you agreed it. Your existing lender knows your maturity date as well as you do.
The difference is whether you started early enough to have somewhere else to go. The offer in the letter reflects what the lender expects you will accept, not the best it could do.
If you let the date pass, most mortgages renew automatically, often onto the lender’s posted terms. That is the most expensive outcome on the table.
Renewal is also the one point where switching lenders needs no new purchase and no new property. Only your file has to still qualify.
The citable version: a mortgage renewal offer is an opening position, and a borrower who starts about a year before maturity is the one who has a credible alternative to negotiate with.
How it works
We price the switch against staying put.
Three steps, worked on your file rather than on a rate sheet. You get the comparison in writing.
Read the offer properly
Send us the renewal letter and your current balance. We establish the benchmark everything else gets measured against, including the term and the prepayment terms, not just the rate.
Check you still qualify elsewhere
A new lender underwrites you again from scratch. We find out whether you can credibly move before you try to negotiate as though you can.
Compare cost against saving
Switching carries discharge and registration work, and a collateral charge can add to it. We set that total against the saving so you compare like for like.
The whole lender market. Banks, credit unions, monoline and private lenders.
Usually no cost to you. On most standard residential mortgages the lender pays the brokerage.
We say when staying put wins. If your existing lender is the better deal, we tell you.
Timing
Start about a year out, because time is what gives you a choice.
Worked backwards from your maturity date. Your position at renewal rests almost entirely on having time and a credible alternative.
| Step | Who does it | What it produces |
|---|---|---|
| Diarise maturity roughly a year out | You | Time, which is the only thing that gives you a choice here |
| Receive the lender’s renewal offer | Lender | An opening position, not a final one |
| Check whether your file still qualifies elsewhere | Your broker | Knowing whether you can credibly move |
| Compare switching costs against the saving | You and your broker | A number, including any discharge and registration cost |
| Negotiate, switch, or sign | You | The next term |
Doing nothing is also a decision. The mortgage usually renews automatically on the lender’s posted terms, which is the most expensive outcome on the table.
Documents
Staying needs almost nothing. Moving needs a full application again.
That asymmetry is part of why your existing lender’s first offer is rarely its best. Here is what a switch actually asks of you.
| Document | Why it is needed | What delays it |
|---|---|---|
| The renewal offer from your current lender | The benchmark everything else is measured against | Arriving late, sometimes only weeks before maturity |
| Current income verification | A new lender underwrites you again from scratch | Income that has changed since the original approval |
| A current mortgage statement | Confirms balance, maturity date and payment history | Nothing, the lender provides it |
| Property details, and sometimes an appraisal | The new lender is taking security it has not assessed | Appraisal turnaround |
| Your registered charge type | A collateral charge can add cost to a switch | Discovering it only at this point |
A lawyer is involved only if you switch. A move to a new lender means discharging the old charge and registering the new one, which is where part of the cost sits. Staying with your existing lender generally does not require you to requalify.
Why Pekoe
Here’s why you should use us.
A bank shows you its own shelf. We compare the whole lender market, and we back it with three promises.
Pekoe Rate Drop Guarantee
Get the lowest rate or receive up to $2,000 cash back when you close. It’s that simple.
Higher Approval Amounts
In our files, clients are approved for around $70,000 more than at their branch, because we place the file where its rules fit.
Lightning Fast Approvals
Our 24-hr commitment guarantee means quicker underwriting when it matters the most.
Questions
Asked before every renewal.
What happens if I just sign the renewal letter?
You get the next term on the terms offered. That offer reflects what the lender expects you to accept, and it is an opening position rather than its best available.
What if I do nothing at all?
Most mortgages renew automatically, often onto the lender’s posted terms. It is the most expensive of the available outcomes.
How early should I start?
Around a year out. Your position at renewal rests almost entirely on having time and a credible alternative.
Does switching lenders cost me anything?
There can be discharge and registration costs, and a collateral charge can add to them. Compare that total against the saving rather than comparing rates alone.
Can I be refused at renewal?
Your existing lender can decline to renew, which leaves you needing a new lender before maturity. It is uncommon but it is the scenario worth having time for.
Will I need to requalify to switch?
A new lender underwrites you again, so yes. Staying with your existing lender generally does not require it, which is part of why its offer is rarely its best.
My payment is jumping sharply. What are my options?
Lengthening the amortisation, changing the term, or restructuring entirely are all on the table. Model the payment first, then decide.
Is a switch the same as a refinance?
No. A switch moves the same balance to a new lender. A refinance changes the amount you owe, and only a refinance lets you borrow more.
Read next
The answers behind each step.
The full stage. The mortgage renewal process, stage 7 of 9.
If you do nothing. What happens if you ignore the renewal letter.
If your situation has changed. Renewing with worse credit or income, and what to do when the bank will not renew at all.
Switching instead of renewing. A switch and a refinance are not the same move.
Beyond renewal. Refinancing after renewal in Alberta.
Run the numbers. Renewal payment shock and prepayment penalty.
Check today’s live rates at pekoe.ca/rates, updated daily. You can also get a pre-approval certificate in seconds.
Before you sign
Send us the letter. We’ll tell you which way wins.
Send the renewal offer and your current balance and we will price staying against switching, net of fees, so you see one number. A licensed broker answers on chat in real time, not a script.
Rather handle the call yourself?
The Renewal Negotiation Playbook
Pekoe runs a paid course on exactly this conversation, for people who would rather negotiate their own renewal. What to ask, in what order, and what to do when the bank says no.