Don’t Let Your Lender Count on Your Silence.

Mortgage renewals in 2025 are like gym memberships — if you don’t actively negotiate, you’re probably paying too much.

Yet 60% of Canadians simply sign the renewal offer from their lender without asking a single question. That inaction could be costing you thousands.

Let’s change that. Here’s how to beat the lender’s game and come out ahead.

 What Is the “Loyalty Penalty”?

The loyalty penalty refers to what happens when lenders offer higher rates to existing clients than what they’re offering to new ones. It’s the financial version of, “Thanks for staying loyal — now here’s a worse deal!”

Why it happens:

Lenders know most people won’t bother to shop around, so they send a “take-it-or-leave-it” offer — assuming you’ll just renew out of convenience.

 What’s New in 2025?

With the Bank of Canada holding rates steady but inflation still lurking, lenders are being cautious — and sneaky. Some are:

• Offering short-term teaser rates that spike later,
• Bundling in unnecessary “features” to justify higher rates,
• Pushing for auto-renewals with little disclosure.

 How to Avoid the Trap: Your 4-Point Renewal Plan

1. Start Early – At Least 120 Days Out

Most lenders allow you to renew or switch up to 4 months before your term ends — without penalties. That gives you time to shop, negotiate, and get pre-approved elsewhere.

2. Get a Second (or Third) Opinion

Always compare your lender’s offer to what’s available on the open market. Mortgage agents (like me ) have access to multiple lenders, some of which only work through brokers.

3. Negotiate Hard – Or Let Me Do It

Even if you stay with your current lender, don’t just accept the first rate they offer. Counter. Ask about hidden fees. If they balk, I’ll happily step in and get you a better deal — no awkward phone calls required.

4. Consider Your New Goals

Your life probably changed since your last mortgage. Renewal is a chance to:

• Refinance high-interest debt,
• Tap into home equity for renovations,
• Adjust your amortization to manage cash flow.

 Wait — Will Switching Lenders Hurt My Credit?

Not significantly. In fact, if multiple mortgage inquiries happen within a 14-day window, it’s treated as one hit. So don’t let that stop you from exploring better options.

 Final Thought: Loyalty Is Great — But Not If It Costs You

You don’t need to be a rate expert or a negotiation ninja to save money — you just need someone in your corner.

 Renewal coming up soon?

Let’s chat before your lender does.

Call/text me directly 905-466-5070 – I actually answer

(Or send me an email susan@susanmortgages.ca)

Susan Mortgages – Smarter Lending Starts Here.