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Alex Jodoin Mortgages

Services / Renewal

Renewing your mortgage.

Most renewal letters are written to be accepted, not negotiated. I work the other side of that.

The letter your bank sends you isn't personal. It's a system. When I worked at CIBC and TD, I saw how those letters get drafted. The rate offered is rarely the bank's best one, because most people sign without asking for better. The fix isn't complicated: start six months out, pull your real numbers, shop your bank against the market in parallel, and don't take the first number that lands in your inbox.

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"The rate on your renewal letter is rarely the best one available. Your bank knows that. The fix is just doing the work most people don't."
Alex Jodoin · Mortgage agent since 2017

Who this is for

Probably you, if any of this is true.

  • Your renewal is in the next six to twelve months.
  • You've just received a renewal letter and you're not sure what to do with it.
  • You're tempted to default to whatever your bank sends because it's the easy path.
  • You've never actually shopped your renewal and want to see what's out there.

My approach

How I work a renewal file.

  1. 01

    Start six months out.

    Earlier and you can't actually act on it; later and you've lost the leverage that comes from having a real alternative in hand. Six months is the sweet spot.

  2. 02

    Pull the data first.

    Current rate, term, balance, payment frequency, prepayment penalty, registered charge type. Without these, nobody can give you a real comparison, and most renewal letters don't list them either.

  3. 03

    Shop your bank against the market in parallel.

    Ask your current lender for their best offer. At the same time, I'll pull comparable rates from monolines and other major banks. You want both numbers in front of you before you decide. Most people only ever see one.

  4. 04

    Negotiate on term, not just rate.

    A two-year fixed at a slightly higher rate may beat a five-year fixed at a slightly lower one, depending on where rates are heading and your plans for the property. The right answer depends on your timeline, not the lender's preferred product.

  5. 05

    Time the rate hold.

    Most lenders will hold a rate for 90 to 120 days. Lock it in early; if rates drop before close, most lenders will honour the lower rate. You get the upside without the downside.

Six months out

A timeline that actually works.

Most of the leverage in a renewal sits in the calendar. Move too late, and you're stuck with whatever your bank put in writing. Here's the cadence I use with every renewal client.

  1. 6 months out

    Pull your current mortgage details from your bank's portal. Confirm your renewal date in writing.

  2. 4 months out

    Talk to me (or someone like me) for a market read. No commitment yet, just data.

  3. 3 months out

    Most lenders open their rate-hold window. Lock in your alternative at this point so you have a real number to negotiate against.

  4. 2 months out

    Ask your bank for their renewal offer in writing. Compare directly to your locked alternative, apples to apples.

  5. 1 month out

    Make the call. Accept your bank's offer if it's the right one. Trigger the switch if it's not.

  6. Week of

    Sign the renewal documents. If you're switching, your new lender handles the discharge and re-registration.

A teardown

What's actually in your renewal letter.

I've seen hundreds of these. Different banks, same shape. Here's what they contain, and just as important, what they leave out.

What it has

  • A rate, usually at or near the bank's posted rate.
  • A term, usually whichever one is most profitable to the bank that month (often a 5-year fixed).
  • A no-friction 'renew online' button that locks you in before you've shopped.

What it's missing

  • Any indication that the rate is negotiable. It almost always is.
  • The bank's actual best rate. It's lower than what they offered you.
  • Any reference to what other lenders are quoting. Obviously.

Common questions

Common questions

  • Should I stay with my bank or switch?
    It depends entirely on the offer. If your bank matches the best rate I can find elsewhere, staying is fine. If they don't, switching is straightforward and usually free at renewal. The question isn't loyalty; it's whether their offer is competitive once you actually have something to compare it to.
  • How early can I lock in a rate?
    Most lenders offer 90 to 120 days of rate hold. That means you can typically lock in a rate three to four months before your renewal date. Earlier than that, you're collecting data; later than that, you're losing leverage.
  • What if rates drop after I lock?
    Most lenders honour the lower rate at close (sometimes called a 'rate float-down'). I'll confirm the specifics with whichever lender you choose — terms vary.
  • Can I switch lenders at renewal without a penalty?
    Yes. A switch made at renewal carries no prepayment penalty. The new lender usually pays the legal and discharge fees too. The main cost is your time and a bit of paperwork.
  • Is a 5-year fixed always the best choice?
    No. It's the most-sold term in Canada, which is different from being the best for your situation. Shorter terms (1-3 year fixed, or variable) can win when rates are expected to fall, or when you plan to sell or refinance inside the term. I'll lay out the trade-offs for you specifically.
  • What's 'blend and extend' and is it worth it?
    Blend and extend means renewing early at a blended rate that combines your current rate with the new term's rate, in exchange for extending the term. Sometimes it's a real win, especially when rates are expected to rise. Sometimes it locks you into a worse position than just waiting. The math is specific to your file — don't take it on the lender's word.
  • Do I have to requalify if I'm switching?
    Yes. A switch is a new mortgage at a new lender, so you go through their underwriting, including the stress test. If your income or credit has changed since you originally qualified, that matters. I'll walk you through what to expect before we start.
  • Will a switch hurt my credit score?
    A new mortgage means a hard credit pull, which dings your score temporarily. Closing one mortgage and opening another also affects average account age. The dip is usually small and short-lived.

Get in touch

Let's beat the bank to it.

Send your renewal date and the rate you're currently paying. I'll come back with what's possible.

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The form

Tell me a bit about what you're looking into.

I read every message and reply personally, usually within a business day. No pitch waiting on the other end.

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