Mortgage Renewal: Why Accepting the First Offer Could Cost You
Planiprêt
Feb 23, 2026
Every year, thousands of homeowners in Quebec renew their mortgage by simply signing the offer sent by their financial institution.
Quick. Simple. No appointment required.
But behind this apparent convenience often lies a hidden cost.
What Banks Send Automatically
A few months before maturity, your lender sends you a renewal offer. It usually includes:
- A fixed or variable rate
- A proposed new term
- The same terms and conditions as your previous contract
The message is clear: sign here and everything continues as before.
What is not mentioned is that this offer is not necessarily the most competitive on the market. It is primarily designed to simplify the process for the institution.
However, renewal is a strategic moment. It is one of the rare times when you can completely restructure your mortgage without penalty.
Why You Should Shop Around, Even If You Stay with the Same Bank
Many homeowners hesitate to shop around because they do not want to switch institutions.
The good news: you do not have to switch.
Comparing options often allows you to secure a better rate, negotiate certain conditions, adjust the term according to the economic context and review product flexibility.
In many cases, your own bank may improve its offer if it knows you have compared.
Not validating the market is like renewing your insurance without checking prices elsewhere.
An Opportunity to Adjust Your Strategy
Your reality today may not be the same as it was five years ago.
Renewal is the perfect opportunity to shorten or extend your amortization, accelerate repayment if your income has increased, consolidate debts, access a home equity line of credit or prepare for a future purchase or investment.
Too often, homeowners automatically renew the same structure without asking whether it still serves their current goals.
A mortgage is not just a rate. It is a financial tool.
The Strategic Role of a Mortgage Broker
A broker does more than find a competitive rate.
They analyze your current financial situation, medium-term projects, risk tolerance, market conditions and lender specifics.
They can compare multiple institutions, negotiate on your behalf and clearly explain the real impact of each option.
Most importantly, they help you make an informed decision rather than an automatic one.
The Real Risk: Inertia
Accepting the first offer is not necessarily a bad decision. But doing so without analysis can cost you thousands of dollars in interest, reduced flexibility, higher penalties if you need to sell and a structure that does not align with your plans.
Renewal is a strategic moment, not an administrative one.
The Right Timing
Ideally, the conversation should begin 4 to 6 months before your maturity date. This gives you time to evaluate the market, compare scenarios, negotiate calmly and make a decision aligned with your objectives.
Approaching Your Renewal?
Before signing anything, take the time to have a strategic conversation.
Talk to us 4 to 6 months before your maturity date.
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