5 things your bank won't tell you about your mortgage renewal.

Your mortgage renewal letter arrives in the mail. Your bank offers you a rate, you sign it, and you're done for another 5 years. Simple, right?

That simplicity is costing Canadian homeowners thousands of dollars every year. Here are the five things your bank would rather you didn't know.

1. Their Renewal Offer Is Almost Never Their Best Rate

Banks know that most people will simply sign the renewal letter. Industry data shows that over 60% of Canadians renew with their existing lender without shopping around. Banks factor this inertia into their renewal offers.

The rate on your renewal letter is typically 30-60 basis points higher than what you could get by shopping the market, or even by simply calling your bank and negotiating. On a $400,000 mortgage, that's $1,200-2,400 per year in unnecessary interest.

2. You Can Start Shopping 120 Days Early

Most borrowers don't know that you can lock in a new rate up to 120 days before your renewal date. This is a huge advantage because:

• - If rates drop before your renewal, you get the lower rate
• - If rates rise, you're already locked in at today's rate
• - You have plenty of time to compare lenders without rush

The 120-day window is your safety net. Use it.

3. Switching Lenders at Renewal Is Free

Many people assume there are penalties or fees to switch lenders at renewal. There aren't. When your term is up, you can move your mortgage to any lender without a penalty.

The new lender typically covers: - Legal/registration fees for the transfer - Appraisal costs (if needed) - Discharge fee from your current lender (usually $200-350)

Your total out-of-pocket cost to switch is usually $0. The new lender wants your business badly enough to cover everything.

4. Your Bank's "Loyalty" Doesn't Reward You

Having been with your bank for 10, 20, or 30 years doesn't get you a better rate. Banks don't have loyalty pricing. They have retention offers, which only come out after you threaten to leave.

Even then, the retention offer is usually not as good as what you'd get from a competing lender. Your bank is betting that the hassle of switching feels bigger than the savings. (See point #3: there is no hassle.)

5. A Broker Can Do All the Work for You

This is the part banks definitely don't want you to know. A mortgage broker will:

• - Compare rates from 50+ lenders on your behalf
• - Handle all the paperwork for the switch
• - Coordinate with your current and new lender
• - Make sure the transition is seamless
• - Do all of this at no cost to you

The broker is paid by the new lender. You get a lower rate, save thousands, and don't have to do any of the legwork.

The Math Is Simple

Let's say your bank offers you 5.14% on renewal. A broker finds you 4.34% from a competing lender.

On a $400,000 mortgage over 5 years: - Bank renewal: $141,280 in interest - Broker rate: $118,960 in interest - Your savings: $22,320

That's real money, enough for a family vacation every year, or an extra $4,464/year toward paying down your principal faster.

What to Do Right Now

If your renewal is coming up in the next 120 days:

1. Don't sign the renewal letter yet
2. Get a free comparison quote from Open Financial
3. We'll show you what 50+ lenders are offering for your profile
4. If we can't beat your bank's offer, you've lost nothing

Your renewal is the single biggest opportunity to save on your mortgage. Don't leave money on the table.