Three Tips for Renewing Your Mortgage in 2023

November 15, 2022

Key points:

  • Staying with your existing lender at renewal time means there is no need to requalify, while moving to a new lender will require borrowers to requalify.
  • It’s important to understand all your options, because your existing lender is not always the best fit.
  • Borrowers might want to consider a new product as the market changes.

Renewing your mortgage? Consider these tips!

In this video, I discuss a few tips to help borrowers whose mortgages are coming up for renewal. It’s important to shop around, consider every available product, and understand requalification requirements. You can watch the video below for full details.

Don’t feel like watching? Find the full transcript below!

#1: Understand your default position

Chris: [00:00:03] Number one is to understand your default position. The good news is, is that your existing lender does not want to see you walk out the door and therefore is going to work very hard to retain or keep your mortgage with them. And the nice thing about that is that if you stay with your existing lender, there is no need to requalify for your mortgage.

#2: Shop it early

Chris: [00:00:25] But just because your existing lender makes it easy to stay with them doesn’t mean that you necessarily should. And that brings me to tip number two, which is to shop it and shop it early. The truth is that it is a competitive market and there might be a lender out there that wants your business more than your existing lender. So it’s worthwhile to connect with the mortgage broker like me to have us present different options that might be available to you to move your mortgage from your current lender to a competitor that really wants it.

Chris: [00:00:58] Now, there’s a double edged sword, because if we move your mortgage from your current lender to another lender, you will be required to requalify. However, the good news is, is that the new lender will pick up all the costs and fees associated with transferring your mortgage and to help attract that new business to them.

#3: Consider something new

Chris: [00:01:17] The third tip is to consider something new. If you have always gone with the safe bet of a five year fixed and you’re now looking at new renewal rates for five year fixed, which are well into the 5 per cent, approaching 6 per cent range, you might get a little bit of sticker shock because we haven’t seen rates like this for decades.

Chris: [00:01:38] So instead of locking into a new five year fixed rate term, maybe consider an alternative product such as a short term fixed or even a short term variable or five year variable rate that would allow you to take advantage of lower interest rates in the near to mid term without being locked into a five year fixed. Because the one thing you have to remember is that the penalty to exit a fixed rate mortgage is based on the interest rate differential. So if you’re committed to one rate with the lender and interest rates go lower, that delta is the penalty that you would have to pay to exit to refinance and it becomes very cost prohibitive.

Chris: [00:02:19] My name is Christopher Molder. I am a Toronto-based mortgage broker and I love what I do. I love talking to borrowers like you to see if we can keep your current lender honest. If you have a mortgage that’s up for renewal, reach out with confidence to explore alternative options. I’m just a phone call or an email away. Til next time. Bye for now.

Need more help or information?

I’m committed to helping my clients understand their mortgage options and connecting them with the product that’s right for them. If you’d like to discuss your mortgage, you can contact me here or schedule a convenient call time directly into my calendar below.


Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too. He’s a second generation mortgage broker. Following in his father’s steps he joined the family mortgage business straight out of university.