Mortgage Renewal Canada 2025: How to Negotiate the Best Rate
When it comes to your mortgage renewal in Canada, too many homeowners simply sign the offer their bank sends without exploring better options. In 2025, with rates stabilizing and lenders competing harder for business, that could be a costly mistake.
1. Start the Renewal Process Early
Lenders usually contact you 4–6 months before your term ends — but you don’t have to wait. Starting early gives you time to compare rates and terms across multiple lenders. Even a 0.25% difference can save thousands over your next term.
👉 Learn more about how early preparation helps from our post on Mortgage Renewal Strategies.
2. Don’t Accept the First Offer
Your current lender may count on you staying out of convenience. Always negotiate your renewal — or better yet, let a mortgage broker handle the negotiation for you. Brokers often access exclusive rates that banks don’t advertise publicly.
For comparison, visit the Bank of Canada to see the latest benchmark interest rates before you commit.
3. Consider Switching Lenders
Switching your mortgage doesn’t have to be complicated. Most major lenders cover transfer fees to win your business, and your new broker can manage the entire process for you.
Before switching, ask for details about penalties, prepayment options, and rate guarantees. Small differences can make a big financial impact.
4. Reassess Your Mortgage Goals
Your financial situation has likely changed since your last renewal. Take the opportunity to:
- Adjust your amortization period
- Add prepayment privileges
- Explore variable or hybrid terms
This ensures your mortgage fits your current goals — not just your lender’s preferences.
5. The 2025 Mortgage Renewal Advantage
With rates expected to decline modestly, 2025 is an excellent year to negotiate aggressively. Borrowers renewing now can potentially secure rates up to 1% lower than the 2023 peak, especially when working with experienced brokers who know which lenders are making the most competitive offers.
Final Thoughts
Your mortgage renewal in Canada is one of the best opportunities to improve your long-term financial health. Don’t treat it as paperwork — treat it as a chance to save.
Talk to a professional at Mortgages.ca to compare renewal options and ensure you get the best possible rate for 2025.