London & Southwestern Ontario
Mortgage Renewal in London, Ontario
Your lender's renewal letter is an offer, not a bill. It is the one moment in the mortgage cycle where changing lenders usually costs nothing but paperwork.
Here's how to approach a London renewal so you're comparing properly rather than signing out of convenience.
Nandan Bajani · Licensed Mortgage Agent | Ontario · The Mortgage Firm Inc.
Start about 120 days out
Most lenders will hold a rate up to 120 days before maturity, and a straight switch to a new lender takes a few weeks to arrange. Starting early means you can accept a lower rate if one appears and still fall back on your existing lender's offer if it doesn't.
Staying put vs switching lenders
Staying is simplest: sign and continue. Switching means re-qualifying, but on a straight switch — same balance, same amortization, no new money — many lenders cover or absorb the legal and appraisal costs. The comparison should include the term, prepayment privileges and the penalty formula, not just the headline rate.
- Straight switch: same balance and amortization, generally no penalty at maturity
- Refinance at renewal: new money added, requires full qualification and legal work
- Early switch before maturity: penalty applies and needs to be weighed against savings
Penalties and how they're calculated
At maturity there is normally no prepayment penalty. Breaking early is different: variable-rate mortgages typically use three months' interest, while fixed-rate mortgages use the greater of three months' interest or an interest rate differential calculation that varies significantly between lenders.
Renewal is a good time to restructure
If your situation has changed — consolidating higher-interest debt, funding renovations, adjusting amortization, or adding or removing a person from title — renewal is the natural moment to do it, because you're already re-documenting the file.
Related reading
Questions people ask
Do I have to re-qualify to renew with my current lender?+
Generally no, if you simply sign the renewal. Switching to a new lender or adding funds means qualifying, including the stress test with most federally regulated lenders.
How early should I start a London mortgage renewal?+
About four months before maturity. That leaves room to hold a rate and complete a switch without rushing.
Does switching lenders cost me anything?+
On a straight switch, many lenders cover or reimburse the standard legal and appraisal costs. That should be confirmed in writing for your specific file.
Can I shorten my amortization at renewal?+
Yes, and it's one of the most effective ways to reduce total interest if the higher payment fits your budget.
Compare your renewal offer before you sign
A short conversation is usually enough to know what's realistic. No obligation, no pressure.