The Ultimate Guide to Mortgage Renewal in Canada: Ensuring Equity Mainly Matters

As the term of your mortgage concludes, it’s crucial to understand the options and strategies available for renewal, particularly in the competitive Canadian market. This guide aims to provide comprehensive insights and tips to navigate the renewal process effectively, ensuring you make the most informed decisions for your financial future. “Mortgage Renewal Canada” is a pivotal term for homeowners seeking to optimize their mortgage conditions as they enter a new term.

  1. Balance or principal remaining at the Renewal date
  2. Interest Rate
  3. Payment Frequency
  4. Term
  5. Any charges or Fees that may apply
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Yes, the borrower can move his/her Mortgage to another lender if it offers better terms and conditions. Borrowers should start shopping around 3-4 months before the end date of their Mortgage term (Maturity Date). However, switching lenders can involve some costs like Set-up Fees, a Transfer or Assignment Fee, a Property Appraisal Fee and any other Administration Fees.

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1. Understanding Mortgage Renewal

What is Mortgage Renewal?

Mortgage renewal occurs at the end of your mortgage term, presenting an opportunity to renegotiate the terms of your next mortgage period. This might include the interest rate, the term length, payment frequency, and other conditions of the mortgage contract.

Key Considerations for Renewal:

  • Reviewing Your Needs: Consider any changes in your financial situation or future plans that might affect your mortgage choice.
  • Comparing Options: Look beyond your current lender to ensure you’re getting the best rate and terms available.
  • Negotiating Terms: Engage in negotiations with lenders to secure favorable rates and conditions.

2. Preparing for Mortgage Renewal

When to Start:

Begin the renewal process several months in advance of your term’s end. This allows ample time to assess your options, compare rates, and negotiate terms.

Understanding Your Current Contract:

Know the details of your current mortgage, including any penalties for switching lenders and the conditions for renewal.

3. Strategies for Mortgage Renewal

Assess Your Financial Health:

  • Budgeting: Ensure your budget can accommodate potential changes in mortgage payments.
  • Debt Consolidation: Consider if consolidating other higher-interest debts into your mortgage makes sense for you.

Market Research:

  • Rate Comparisons: Look at various lenders’ rates to ensure you’re getting a competitive offer.
  • Terms and Conditions: Understand the differences in terms, such as fixed vs. variable rates, and choose what suits your situation best.

Negotiation Tactics:

  • Leverage Competitor Rates: Use offers from other institutions as leverage in negotiations.
  • Understand Fees: Be aware of any fees associated with transferring your mortgage or changing lenders.

4. Switching Lenders vs. Renewing

Switching Lenders:

Consider moving your mortgage to a new lender if they offer more favorable terms. Be mindful of any associated costs, such as legal or administrative fees.

Renewing with Current Lender:

Often the simpler route, renewing with your current lender might offer convenience but ensure their rates are competitive.

5. Common Mistakes to Avoid

  • Procrastination: Don’t wait until the last minute to start the renewal process.
  • Ignoring the Market: Stay informed about current mortgage trends and rates.
  • Overlooking Terms: Understand all the terms and conditions of your new mortgage, not just the interest rate.

Renewing your mortgage is an important financial decision. By starting early, understanding your options, and negotiating effectively, you can ensure that your mortgage continues to align with your financial goals and needs. Remember, in the dynamic Canadian mortgage market, “Equity Mainly Matters” is your partner in securing the most beneficial terms for your home investment.

Hamilton, Ontario

I had a very pleasant experience working with Shawn Sef at Equity Mainly Matters Loans. We contacted Shawn looking for help in order to pay off our high interest credit card debts. Shawn made the process very easy for us by explaining the Mortgage loan details for the Debt Consolidation Mortgage Solution which he recommended for us. Shawn was actively present every step of the way and was very knowledgeable. I will definitely recommend Shawn to my peers due to his knowledge, professionalism and expertise.

Brampton, Ontario

Shawn is extremely passionate about his job. Shawn always demonstrates a positive and professional attitude. His easy going and friendly personality always makes the experience of working with him fun and stress free. Shawn made the entire Mortgage loan process very simple for me to which I’m thankful for. Shawn is very proactive and updates me on a regular basis in regards to my file.

Markham, Ontario

Me and my husband had never worked with a Mortgage Broker before. I needed to consolidate all of my debts. I was paying high monthly interest fees to my creditors and my bank informed me that I couldn’t get approved with them because of my low credit score. Shawn did an excellent job by helping me consolidate and pay off all of my various high interest debts. I’m now debt free. My credit score has improved and I don’t owe creditors any monthly high interest payments. We went from paying $1,650 month towards our credit card debts and loans, to now paying only $520 month which helped us build up a good savings. Shawn rescued us from our creditors and helped us save an extensive amount of money for our families future.


As a first time home buyer, we required a Mortgage broker who was willing to be very patient with us and to explain every detail of the Mortgage loan process and provide us with as much information as possible. Shawn informed us of the exact required down payment amount (based on the types of lenders that we qualified for), fees, closing costs, Land Transfer tax etc. Shawn was very good in providing us with accurate rates, figures and calculations which we realized we could afford the monthly Mortgage payments and make the Home Purchase work. One other important factor was that Shawn kept on top of our file by updating the progress every step of the way which was very important to us. Shawn is very proactive which we appreciated!

Toronto, Ontario

Shawn helped our family obtain a low rate 2nd Mortgage from a Private Lender. Banks turned us down as we failed to meet their requirements for the stress test, income and credit criteria. However, Shawn was able to find various Private Lenders/Investors that were interested in making us an offer and we ended up taking a great offer for a 2nd Mortgage which made the most sense for us. We will definitely refer our family and friends to Shawn in the near future. I can’t say how much I appreciate all the time and effort Shawn put into our file.

Mississauga, Ontario

Shawn demonstrates excellent customer service skills. He’s always very quick to respond to my emails and calls. Shawn helped me get approved twice in the past year alone and I hope to work with him again in the near future. Shawn was very friendly, attentive and dedicated his time and effort by providing me with solid knowledge, expertise and advice which in return helped the process of purchasing my first home very easy and stress free. Shawn even followed up on my behalf with my lawyer in order to finalize all the details. I would highly recommend his services.

Ottawa, Ontario

From the first time I spoke with Shawn Sef, I felt comfortable and at ease which was due to his calm and patient personality and attitude. He was also very understanding and caring to our current situation and needs by providing the best course of action for us to take which made the most sense for our family. Shawn is very knowledgeable within the mortgage field and delivered exactly what he said he would. He even provided us with accurate closing/funding dates from day one. I would definitely recommend Shawn Sef to any borrower looking for a good
Mortgage broker.

Toronto, Ontario

Shawn had helped my wife and I obtain a 2nd Mortgage from a Private Lender last year. We used the majority of the Mortgage loan proceeds to help renovate/upgrade our home. Once the refurbishments had concluded, we ordered a new appraisal and noticed that our house value had increased substantially. The following year, Shawn helped us refinance both our Institutional and Private Mortgages into a new low rate, 1st Mortgage with an A Lender (Bank) which is going to help us save an extensive amount of money in monthly payments moving forward. I’m very thankful for Shawn’s knowledge, skills and expertise within the mortgage industry which ended up helping us save thousands of dollars.

Frequently Asked Questions (FAQs)

What is mortgage renewal?

Mortgage renewal is the process of re-negotiating the terms of your mortgage at the end of its term. This is a routine practice, allowing homeowners to adjust the interest rate, payment schedule, and other terms for the next period.

When should I start preparing for my mortgage renewal?

You should start preparing for your mortgage renewal approximately 4-6 months before your current term ends. This gives you enough time to evaluate your financial situation, research market rates, and negotiate with lenders.

Can I switch lenders at renewal?

Yes, you can switch lenders at mortgage renewal. It’s often a good opportunity to seek better rates or terms. However, be aware of any penalties or fees associated with leaving your current lender, as well as the costs of setting up a new mortgage with another lender.

Will renewing my mortgage affect my credit score?

Renewing your mortgage with the same lender typically doesn’t affect your credit score. However, if you switch lenders, the new lender will likely perform a credit check, which can temporarily impact your score.

How can I get the best rate at renewal?

To get the best rate, start by researching current mortgage rates and understanding what’s available in the market. Negotiate with your current lender using competitive offers as leverage. Don’t be afraid to shop around and consider switching lenders if you find a significantly better deal.

What happens if I don’t take any action at renewal time?

If you don’t take any action, your mortgage might automatically renew with your current lender at the posted rate, which is often higher than the negotiated rate. It’s crucial to be proactive to ensure you’re getting the best terms possible.

Can I renegotiate my mortgage terms before the end of my term?

Some lenders offer a blend-and-extend option, allowing you to renegotiate your mortgage before the term ends. However, this might involve fees or penalties, depending on your lender’s policies and the specifics of your mortgage contract.

What are the possible fees involved in switching lenders?

Fees may include discharge fees from your current lender, registration, and legal fees for the new lender, as well as appraisal fees. Some lenders might offer to cover some or all of these costs to win your business.

How do I know if I should stick with my current lender or switch?

Compare the renewal offer from your current lender with offers from other lenders considering rates, terms, services, and fees. Consider your financial situation and preferences for flexibility, payment options, and other features. If another lender offers a significantly better deal, it might be worth switching.

Is it worth paying a penalty to break my mortgage for a better rate elsewhere?

This depends on the size of the penalty, the potential interest savings with the new rate, and the length of time you plan to stay in your home. Calculate the break-even point and long-term savings to determine if it’s financially beneficial.

By understanding these FAQs and considering your personal and financial situation, you can navigate the mortgage renewal process more effectively and make decisions that best suit your needs and goals.