I'm Theeban Pathmanathan, Mortgage Agent Level 2 with FIN Mortgage – Dominion Lending Centres. I'll shop the market across 50+ lenders so you can compare before you commit, potentially saving you thousands over your term.
Who this is for
- Homeowners whose term ends in the next four to six months.
- Anyone who received a renewal offer and isn't sure if it's competitive.
- Homeowners whose life has changed: a new job, a new baby, a separation, self-employment, or plans to renovate or move.
- People who want to add funds or restructure at renewal instead of breaking the mortgage early.
- Borrowers with a B or private mortgage who are ready to move back to a prime lender.
How renewing or switching works
Most mortgages have a term (often five years) that is shorter than the amortization (often 25 years). At the end of your term, you can renew with your current lender, switch your mortgage to a new lender, refinance, or pay down some or all of the balance. Because your term is ending, you generally won't pay a prepayment penalty to move. Federally regulated lenders must send you a renewal statement before your maturity date; read it closely, because it shows the rate, term, payment and any conditions.
When to start
Start about 120 to 150 days before your maturity date. Most lenders will hold a rate for up to 120 days, which gives us time to compare offers and lock in a rate early.
Switching lenders and the stress test
For a straight switch at renewal, where you keep the same loan amount and amortization, federally regulated lenders no longer require you to requalify under the stress test for uninsured mortgages, and insured mortgages have long had this flexibility. That makes switching more accessible than it used to be. If you want to add funds or extend your amortization, it's treated as a refinance, and the usual qualifying rules apply.
Costs of switching
Switching may involve legal or appraisal costs, and your current lender may charge a discharge fee. Many lenders offer programs that help cover some switch costs. I'll show you the real net savings so you can decide.
If your payment is going up
Many homeowners who locked in a few years ago are renewing at higher rates than they started with. If your new payment will stretch your budget, a switch to a lender with a better rate can soften the increase, and a different term length can change the rate you're offered. Adjusting your amortization can bring the payment down (that makes it a refinance, and you'll pay more interest over time), and a lump-sum payment on your maturity date, when there's no penalty, can also help. If you're already behind on payments or worried about falling behind, say so on our first call; acting before your maturity date gives you the most room to plan.
Documents you'll need
- Your renewal offer or current mortgage statement
- Photo ID
- Your most recent property tax bill
- Income confirmation: recent pay stubs and an employment letter, or Notices of Assessment if you're self-employed
- Home insurance details, plus condo fee details if applicable
- A void cheque for the new payment account, if you switch
The process with Theeban
- Free consultation. We review your current mortgage, your renewal offer and your goals for the next term.
- Shop 50+ lenders. I compare rates, term lengths, prepayment privileges, penalties and portability.
- Lock in a rate hold so you're protected if rates move.
- Decide with confidence. If staying is the best option, I'll tell you, and the comparison often gives you useful leverage with your lender. If switching makes sense, I coordinate with the new lender and your lawyer.
- Funding on your maturity date, with no gap in coverage.
Common renewal scenarios
- Your renewal offer came in higher than expected, and you want to know if anyone can do better.
- Fixed or variable? You want an honest comparison before choosing your next term.
- Payment shock: your original rate was much lower, and you want to restructure to keep payments manageable.
- Consolidating debt at renewal to avoid breaking your mortgage mid-term, or rolling in a second mortgage or HELOC.
- Moving from a B or private lender back to a prime lender after rebuilding your credit or income.
- Self-employed at renewal: your income looks different now, and you want a lender that understands it. See self-employed renewal options.
A local Toronto and Durham angle
Many homeowners in Toronto, Scarborough, Markham and across Durham Region bought or last renewed when rates were very different from today. That makes this renewal especially important. Whether you own a condo near Scarborough Town Centre or a detached home in Whitby or Oshawa, I can review your options and meet you at my Toronto or Pickering office, including evenings and weekends.
What to compare beyond the rate
The lowest rate isn't always the best mortgage. When we compare renewal offers, we also look at:
- Prepayment privileges: how much extra you can pay each year without a penalty
- Penalty calculation: how the lender calculates the cost of breaking a fixed-rate mortgage early, which can vary widely
- Portability: whether you can take your mortgage with you if you move
- Term length: whether a shorter or longer term fits your plans for the next few years
- Collateral vs. standard charge: how the mortgage is registered can affect how easily you can switch next time
A few minutes on these details now can save real money later. The refinance and renewal calculator shows how a different rate or amortization changes your payment.
Don't just sign your renewal
Your lender's renewal offer is a starting point, not your only choice. A short call can tell you whether you're getting a competitive deal. For most residential mortgages with qualified borrowers, my service costs you nothing, because the lender pays my compensation. Buying your next home instead? See home purchase mortgages.
Frequently asked questions
When should I start my mortgage renewal?
About 120 to 150 days before your maturity date. Most lenders hold a rate for up to 120 days.
Is there a penalty to switch lenders at renewal?
Generally no prepayment penalty at maturity. There may be legal, appraisal or discharge costs, and some lenders help cover these.
Do I need to pass the stress test to switch lenders?
Not for a straight switch with the same loan amount and amortization. Adding funds or extending the amortization requires qualifying.
Can I add money to my mortgage at renewal?
Yes, but it's treated as a refinance, so you'll need to qualify and stay within 80% of your home's value with prime lenders.
What if I miss my renewal date?
Contact your lender right away. Some lenders roll you into a short or open term, which can cost more. Starting early avoids this.
This page is general information only and is not financial, legal or tax advice. All mortgages are subject to lender approval and qualification (O.A.C.). Rates, terms, programs and government rules change from time to time, so please speak with me about your own situation. Calculator results are estimates only and do not constitute a mortgage approval or offer. Theeban Pathmanathan, Mortgage Agent Level 2 (licence M14000189), FIN Mortgage – Dominion Lending Centres, brokerage licence #12825, independently owned and operated. Licensed by the Financial Services Regulatory Authority of Ontario (FSRA).