When to Accept, When to Keep Shopping
It is easy to waste time searching for the perfect rate. Here are objective criteria for making your decision.
Signs to accept
- Rate within 0.05% of the market best via AMF broker
- 15-20% annual prepayment
- Portability offered with reasonable window
- IRD calculation at contractual rate (not posted rate)
- Cash-back included
Signs to keep shopping
- Gap of more than 0.10% with the best offers
- Prepayment limited to 10% or less
- No portability
- IRD calculation at posted rate (inflated future penalty)
- No cash-back offered
An AMF-certified broker helps you weigh objective factors and make the best decision.
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.