What should I do before my mortgage renewal in BC?

What Happens at Renewal

When your mortgage term ends, your remaining balance is due. You have three options:

1. 1Renew with your existing lender at the rate they offer
2. 2Negotiate a better rate with your existing lender
3. 3Switch to a new lender for a better rate or different terms

Switching lenders at renewal does not typically cost you anything — lenders often cover legal and transfer fees to win your business. However, switching does trigger the mortgage stress test.

Why You Shouldn't Auto-Renew

Your lender knows many borrowers will sign without shopping around. Renewal letter rates reflect this. Even a 0.25% rate difference on a $600,000 mortgage saves approximately:

• $1,500 per year
• $7,500 over a 5-year term

Your 90-Day Renewal Game Plan

• 90–120 days out: Start the process. Most lenders hold a rate at no cost this far out — protecting you if rates rise before your renewal.
• Compare the market: A mortgage broker can pull rates from 50+ lenders in one conversation.
• Negotiate: Armed with competing offers, go back to your existing lender and ask them to match or beat.
• Decide: If another lender offers a meaningfully better rate and the transfer is fee-free, switching is straightforward.
• Don't forget the terms: Prepayment privileges, early break penalties, and portability all matter — not just the rate.

One Thing Most Borrowers Miss