Animated explainer · 1:50
Mortgage Renewals Explained: Why the Renewal Letter Costs You Money
What the renewal letter really is, how much signing it costs, and the options when your lender won't renew.
Watch: Mortgage renewals in 1:50
The short version
- Renewal letters are usually priced above the best available rate because most borrowers sign without shopping.
- Switching lenders at maturity carries no prepayment penalty, and the new lender often covers legal and appraisal costs.
- Renewing with your current lender needs no requalification; switching means passing the stress test again.
- Start the process about 120 days before maturity — and much earlier if your lender has signalled it won't renew.
Full video script, scene by scene
Narration, on-screen text and animation direction exactly as produced.
Scene 1 · 0:00–0:10
Cold open: the letter with the pre-filled rate
Narration: Your lender sends a letter with one rate already filled in and a signature line at the bottom. That letter is not a quote. It is a test of whether you will shop.
On screen: The renewal letter is an offer, not the offer.
Animation: An envelope opens to reveal a friendly letter with a single rate already printed and a signature line. A subtle spotlight highlights the words Simply sign and return.
Scene 2 · 0:10–0:30
What the letter costs
Narration: Renewal offers are typically set above the sharpest available pricing, because most people sign without asking. On a typical Ontario balance, the gap between the letter and a properly shopped rate can be tens of thousands of dollars over a five-year term. The signature takes ten seconds. Undoing it takes five years.
On screen: Small rate gap × big balance × 5 years
Animation: Two payment bars side by side: the letter's rate and a shopped rate. The difference is shaded and multiplied out across 60 months into a visible total.
Scene 3 · 0:30–0:52
Renew, switch, or refinance
Narration: At maturity you have three choices. Renew with your current lender, ideally after negotiating. Switch the same balance to another lender, which costs no prepayment penalty at maturity — the new lender often covers the legal and appraisal costs. Or refinance, which means changing the amount, consolidating debt or taking equity out. Switching needs to be started roughly a hundred and twenty days before maturity so nothing gets rushed.
On screen: Start 120 days before maturity
Animation: Three lanes: Renew (stay put, new rate), Switch (same balance, new lender, no penalty), Refinance (larger balance, cash out).
Scene 4 · 0:52–1:16
The requalification trap
Narration: Here is the catch. Renewing with your existing lender does not require you to requalify. Moving to a new lender does — you pass the stress test again with today's income, today's credit and today's property value. If your income has changed, if you are newly self-employed, or if your credit took a hit, the cheapest rate on the market may not be available to you. That is not a dead end. It is the reason to find out early rather than in the final week.
On screen: Renewing: no requalification. Switching: full requalification.
Animation: A doorway labelled New lender has a stress-test frame. A file that fits the current lender's door has to be turned sideways to fit the new one.
Scene 5 · 1:16–1:38
When your lender won't renew
Narration: If your lender declines to renew — arrears, a maturing private loan, a property they no longer want — you still have options. A B lender can take the file with reasonable documentation. A private mortgage can buy twelve to twenty-four months while credit or income is repaired, provided you plan the exit before you sign. Or you sell on your schedule instead of under a power of sale. All three are better than doing nothing until the maturity date passes.
On screen: Declined renewal: B lender, private bridge, or plan a sale
Animation: A closed door, then three alternate doors open: B lender, private bridge with a repair plan, sell on your terms. A timeline shows a twelve-month repair window.
Scene 6 · 1:38–1:50
Close
Narration: Treat your renewal like a purchase. Get quotes, ask what the switch costs, and only then sign something.
On screen: Shop it. Then sign it. The Juneja Group — FSRA #10874
Animation: The pre-filled letter is set aside; three quotes fan out beside it. A pen hovers, then signs the best one. Logo and licensing lock-up.
Questions people ask about mortgage renewals
Educational information only — subject to approval
This website provides general educational information only and does not constitute financial, mortgage, legal, or tax advice. All rates, products, scenarios, and calculator results are illustrative and subject to lender approval, credit qualification, property valuation, and current market conditions. Mortgages are arranged by Saminder Juneja, Mortgage Broker — Mortgage Centre Canada / Get A Better Mortgage Inc. (FSRA #10874). Nothing on this site constitutes an offer to lend.