Are You Ready for Your Renewal?

Mortgage renewal is your best opportunity to reduce interest costs penalty-free. But proper preparation is essential to maximize savings.

The 5 Self-Assessment Questions

1. Exact maturity date: Check your mortgage statement or call your lender. Note the date and set a reminder 6 months ahead.
2. Current credit score: Get your free Equifax or TransUnion report. A score of 680+ gives you access to the most competitive rates.
3. Balance and amortization: Know your exact balance and residual amortization. This data is essential for comparisons.
4. Market comparison: Consult an AMF-certified broker to learn the best available rates vs your current rate.
5. Requalification capacity: If considering switching lenders, verify if your income and debts allow qualification under OSFI's stress test.

Optimal Preparation Calendar

• 6 months before: check credit score and correct any errors
• 4 months before: contact an AMF broker for the best offers
• 3 months before: get a rate hold at the best available rate
• 1 month before: finalize the decision (stay or transfer)
• Day of: sign the new contract after complete verification

Renewal in the Quebec Context

Mortgage renewal in Quebec represents a major financial opportunity that too many homeowners underutilize. Approximately 60% of borrowers accept their bank's renewal offer without comparing, paying on average $2,500 to $7,500 more in interest per 5-year term. In Quebec, major banks (RBC, TD, BMO, Scotia, NBC, CIBC) and Desjardins credit unions generally send a renewal offer 21 to 30 days before maturity, a timeline often insufficient for adequate shopping. This is why experts recommend starting the process 4 to 6 months before maturity. Most lenders offer a 90 to 120 day rate hold, allowing you to lock in an advantageous rate while continuing to compare available market offers.

Maximizing Your Renewal: A Proven Strategy

To get the most from your renewal, adopt a strategic and methodical approach. Start by checking your credit score with Equifax and TransUnion six months before maturity. A score of 680 and above gives you access to the best rates at A-lenders. Correct any errors and pay credit card balances below 30% of the limit to optimize your score. Contact an AMF-certified broker four months before maturity to get the best market offers and a 120-day rate hold. Compare at least 3 to 5 detailed offers analyzing not only the rate but also prepayment conditions, portability, IRD calculation, conversion options, and cash-back incentives.

Protecting Your Interests at Renewal

Renewal is your mortgage freedom moment: no penalty applies and you can transfer free of charge to a better lender. Do not let inertia cost you thousands of dollars. In Quebec, an AMF-certified broker is your best ally in this process: they have access to preferred rates from multiple lenders, their service is free for borrowers, and the LDPSF requires them to act in your best interest. Take the time to compare, negotiate, and verify every clause before signing your next mortgage contract.