How to Win at Mortgage Renewal (Instead of Just Signing)

Lenders typically send a renewal offer 4-6 months before your term ends, and it's built to be easy to accept — often just requiring a signature. That convenience has a cost: renewal offers are frequently priced higher than what the same lender would offer a new customer, on the assumption that most people won't shop around.

You can start comparing well before your renewal date — most lenders let you lock in a rate 90-120 days in advance, which protects you if rates rise while you're still shopping, without obligating you to that lender if a better offer appears elsewhere.

Switching lenders at renewal is usually straightforward and doesn't carry the prepayment penalty that breaking a mortgage mid-term would — you're simply not renewing with the old lender, not breaking an active term. There can be minor legal or administrative fees, which a competing lender will sometimes cover to win your business.

Bring competing offers back to your existing lender before deciding — many will match or beat a rate you've found elsewhere rather than lose the account, but usually only if you ask.