What Happens at Mortgage Renewal? A Step-by-Step Guide for Canadians

If you’re a Canadian homeowner with a mortgage, chances are you’ll go through the mortgage renewal process multiple times throughout the life of your loan. While it might seem like a routine step, mortgage renewal offers a powerful opportunity to re-evaluate your financial goals, secure a better rate, and adjust your mortgage terms.

At Matrix Mortgage Global, we help Canadians make the most of their mortgage renewal. Here’s a complete step-by-step guide to help you understand the process and how to get the best deal in 2025 and beyond.

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What Is Mortgage Renewal?

A mortgage renewal occurs when your current mortgage term ends — typically every 1 to 5 years — and you need to either renew the remaining balance with your current lender or move your mortgage to a different lender with new terms.

Key Facts:

• You’re not repaying the entire mortgage at renewal — just renewing the contract for the remaining balance.

• Renewal lets you adjust the term, rate, payment frequency, and amortization.

• It’s an excellent opportunity to improve your financial position.

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Step-by-Step: What Happens During a Mortgage Renewal in Canada?

Step 1: Your Lender Sends a Renewal Offer (Day 1 to 120)

Most lenders will send you a renewal offer 30–120 days before your mortgage term ends. This offer typically includes:

• The new interest rate

• The term length (e.g., another 5 years)

• Payment frequency

• Amortization schedule

💡 Tip: Don’t accept the first offer blindly. Lenders often offer a “posted rate” first — which may be higher than what you could qualify for.

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Step 2: Review Your Current Financial Situation

Before signing anything, take time to assess your current financial picture:

• Has your income changed?

• Are you carrying high-interest debt?

• Do you plan to sell or move soon?

• Are you interested in paying off your mortgage faster?

Renewal time is perfect for aligning your mortgage with your current lifestyle.

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Step 3: Shop Around for Better Rates

You don’t have to renew with your current lender. In fact, it often pays to explore other options, especially with mortgage rates fluctuating across Canada.

Options to consider:

• Switch lenders for a better rate or term

• Work with a mortgage broker (like Matrix Mortgage Global) to access a wide network of lenders

• Consider alternative or private lenders if you have bruised credit, are self-employed, or were recently denied by a bank

🔍 Why Use a Broker? Brokers negotiate on your behalf and have access to exclusive rates and solutions not available directly to the public.

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Step 4: Negotiate the Terms

Don’t be afraid to negotiate — especially if you’ve made consistent payments, improved your credit score, or built equity.

Ask about:

• A lower interest rate

• Changing the term (e.g., from 5 years to 3)

• Switching from a fixed to variable rate (or vice versa)

• Adjusting payment frequency or amortization

Matrix Mortgage Global works on your behalf to customize your mortgage to fit your evolving needs.

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Step 5: Decide and Sign the New Agreement

Once you’re satisfied with the terms, you’ll sign the new mortgage contract. This could be:

• A renewal with your existing lender

• A refinance with a new lender

• A switch that doesn’t change the balance but moves it to another institution

🖊️ Make sure to review the fine print — especially any new fees, penalties, or restrictions.

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What If You Miss Your Mortgage Renewal?

If you ignore the renewal notice and don’t take action:

• Your lender may automatically renew you into a high posted rate, often without the best terms.

• You may lose the opportunity to adjust your mortgage structure or shop for a better deal.

• You could be subject to fees or lose out on potential savings.

Avoid this by starting the process early — at least 90–120 days before your term expires.

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Mortgage Renewal vs. Mortgage Refinance: What’s the Difference?

If you want to tap into home equity, consolidate debt, or change loan types, refinancing might be more appropriate. Matrix Mortgage Global can help assess what’s best for your situation.

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Common Mistakes to Avoid at Renewal

1. Automatically accepting your lender’s first offer

2. Failing to shop around or get a second opinion

3. Not reviewing your current goals or financial situation

4. Missing the renewal deadline and rolling into a high rate

5. Ignoring the opportunity to switch to a better lender

Don’t leave thousands of dollars on the table. Mortgage renewal is your chance to do better — and Matrix Mortgage Global is here to help you take full advantage.

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How Matrix Mortgage Global Helps with Mortgage Renewals

At Matrix Mortgage Global, we specialize in helping Canadians renew with confidence, whether you’re:

• A first-time homeowner renewing for the first time

• Self-employed or recently changed jobs

• Carrying consumer debt and want to consolidate

• Facing renewal after bruised or poor credit

• Looking to switch lenders for better terms

We offer access to over 50 lenders, including major banks, B lenders, and private lenders — giving you more options and more control.

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Final Thoughts: Mortgage Renewal Is a Big Opportunity

Many Canadians see mortgage renewal as a formality — but it’s actually a powerful moment to reset your finances and make your mortgage work better for you.

Whether you’re seeking a better interest rate, lower payments, or more flexibility, the key is to plan ahead, ask questions, and get expert advice.

At Matrix Mortgage Global, we take the guesswork out of mortgage renewals and help you secure terms that support your future goals.

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Ready to Renew Your Mortgage?

Don’t just renew — renew smarter. Contact Matrix Mortgage Global today for a free mortgage renewal review. We’ll explore your options, negotiate on your behalf, and make sure you’re getting the best deal possible.