Neha Joneja, a Mortgage Agent Level 2 in Brampton, reviews your mortgage renewal before you sign your lender’s offer. Starting 120 to 180 days before maturity, she compares that offer with other banks, credit unions and alternative lenders, explains fixed versus variable, and helps Brampton homeowners plan for any payment change, in English, Hindi or Punjabi.
- 4.8 on Google (18 reviews)
- FSRA-licensed brokerage #13812
- English · हिन्दी · ਪੰਜਾਬੀ
- Women-owned
What happens when your mortgage comes up for renewal?
Your mortgage has two clocks. The term is the length of your current contract and rate, often three or five years. The amortization is the total time it takes to pay the mortgage off completely, usually 25 or 30 years. When the term ends, whatever balance is left has to be renewed, moved to another lender, refinanced or paid off.
Your lender’s renewal offer may arrive months ahead or much closer to the date; it varies by lender. Don’t wait for the letter. Your maturity date is on your annual mortgage statement, and it’s the date to plan around.
Why does signing your lender’s first offer cost money?
Renewal letters are built for convenience: sign, send it back, done. Lenders know many homeowners never compare, so the first offer is not always the sharpest one available, even from the same lender.
The math is simple, with no rates involved. On a $500,000 balance, every 0.10 percentage point is roughly $500 of interest a year, or a little under $2,500 across a five-year term as the balance comes down. A gap of a few tenths of a point between the first offer and a competing one can be worth several thousand dollars.
Neha puts your lender’s offer beside options from major banks, credit unions and alternative lenders. Sometimes staying is the right call; when it is, you’ll know why.
When should you start shopping your renewal?
Start 120 to 180 days before your maturity date, because:
- Many lenders will hold a rate for around 120 days, and some hold longer on renewals and switches. Policies vary by lender.
- A rate hold protects you if rates rise before your maturity date, and some lenders will give you the lower rate if rates fall instead.
- You have time to gather documents if moving lenders makes sense, and you avoid the last-minute squeeze that pushes people into signing whatever is on the table.
How a renewal review with Neha works
- Share your renewal letter or latest statement: Neha looks at your balance, maturity date, remaining amortization and what you’ve been offered.
- Set your goal: lower payment, faster payoff, flexibility to sell, or money for a renovation or debt.
- Compare real options: rate, term, prepayment privileges and penalty rules, not just the headline number.
- Hold the rate: once you choose, the rate is held while paperwork is completed.
- Renew or switch on time: you either sign with your current lender on better terms or move to a new lender on your maturity date.
Fixed or variable at renewal: how do you choose?
Renewal is one of the few moments you can change your rate type or term length without a prepayment penalty. A fixed rate keeps your payment the same for the whole term. A variable rate moves with the lender’s prime rate; depending on the lender, either your payment changes or the payment stays put while the split between interest and principal shifts.
Two questions usually decide it. How much payment movement can your household budget absorb? And might you sell or refinance before the term ends? Variable penalties are typically three months’ interest, while fixed penalties can be the greater of three months’ interest or the interest rate differential (IRD), which can be much larger.
Neha explains the trade-offs in plain language. For a deeper look, read fixed vs variable: choose wisely.
Can you change your amortization at renewal?
Often, but direction matters. Shortening it raises your payment and cuts total interest, and most lenders allow it at renewal. Extending it to lower your payment may need income documents and a fresh approval. If you change lenders and extend at the same time, it’s no longer a straight switch, so you’d qualify at the stress test rate. Insured mortgages have tighter limits, so Neha checks what your lender allows first.
How do you plan for payment shock at renewal?
If your renewal rate is higher than your current one, your payment can jump. Planning ahead gives you choices:
- Run the numbers early. Neha can show your new payment under a few scenarios before the offer arrives.
- Practise the new payment. For example, if your payment would rise by $450 a month, setting that amount aside for the six months before maturity tests your budget and builds a $2,700 cushion.
- Use prepayment privileges. A lump sum before maturity, within your contract’s limits, reduces the balance you renew.
- Look at the whole budget. If car loans and credit cards are the real strain, a debt consolidation refinance can sometimes lower total monthly outflow.
Plenty of Brampton homes have a registered basement apartment. That rental income can help carry a higher payment, and if you requalify, many lenders count part of it.
Mortgage payment calculator
For illustration only. Not a rate quote or an approval.
Approval subject to lender criteria (O.A.C.). Rates subject to change. Figures are estimates for illustration only.
What if you want to borrow more at renewal?
Adding money at renewal, whether for a renovation, a legal basement unit or paying off debt, turns the file into a refinance, not a renewal. The rules change:
- You requalify at the stress test rate, which is the greater of your contract rate plus 2% or 5.25%.
- Total borrowing is capped at 80% of your home’s value. This is your loan-to-value (LTV): the mortgage as a share of what the home is worth.
- An appraisal is usually required, and there are legal costs.
At maturity there’s no prepayment penalty to break your term. Compare a full mortgage refinance with adding a home equity line of credit (HELOC), a revolving credit line secured by your home.
Should you stay with your lender or switch?
If another lender’s offer is clearly better and you keep the same balance and amortization, a straight switch at renewal generally doesn’t require passing the stress test again. See how it works on switching mortgage lenders at renewal, or start from the renew or switch overview.
Neha meets clients at 7900 Hurontario St, Brampton, ON L6Y 0P6, near Hurontario St & Steeles Ave and Brampton Gateway Terminal, or by online appointment. Many clients find renewal numbers easier to discuss in their own language, so reviews are available in Hindi and Punjabi as well as English.
What to have ready for a renewal review
- Your renewal letter or offer, if it has arrived
- Your latest annual mortgage statement (balance, rate, maturity date, remaining amortization)
- Your most recent property tax bill
- Recent pay stubs and an employment letter, or two years of T1 Generals and Notices of Assessment if you’re self-employed (needed if you switch, extend or borrow more)
- Government photo ID
Approval subject to lender criteria (O.A.C.). Rates subject to change. Examples are for illustration only.
Frequently asked questions
When will my bank send my mortgage renewal letter?
It depends on the lender. Some send it several months ahead and others only a few weeks before maturity. Check your maturity date on your annual statement and start comparing 120 to 180 days before it, whether or not the letter has arrived.
Can I negotiate with my own bank at renewal?
Yes. The first offer isn’t necessarily final, and a competing written offer gives you something concrete to negotiate with.
Do I have to pass the stress test to renew my mortgage?
Not if you renew with your current lender on the same balance, and generally not for a straight switch to a new lender at renewal. You do requalify if you add money, extend your amortization with a new lender, or change the borrowers on title.
What happens if I miss my renewal date?
Depending on your mortgage documents, your lender may move you into a short-term or open term, which can cost more. You can usually still renew properly or switch afterward, so call as soon as you notice.
Can I take a child or spouse off the mortgage at renewal?
Changing who is on the mortgage usually means a new approval, because the remaining borrowers must qualify on their own income. It comes up often in multi-generational Brampton households, and Neha can check this before any legal work starts.
Can I do my renewal review in Punjabi or Hindi?
Yes. Neha works in English, Hindi and Punjabi, in person at her Hurontario St office or by online appointment.
Sources
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- 4.8 on Google (18 reviews)
- FSRA-licensed brokerage #13812
- English · हिन्दी · ਪੰਜਾਬੀ
- Women-owned
Last reviewed by Neha Joneja, Mortgage Agent Level 2, November 2026. General information only, not financial advice for your situation.