Renewal Questions to Ask Your Mortgage Broker

If your mortgage term is coming up for renewal, you’re not alone—about 70% of Canadian mortgages renew every 5 years, and many homeowners simply re-sign with their current lender without exploring better options. But in today’s rate-sensitive environment, that could be a costly mistake.

Here are the top questions Canadian homeowners should ask their mortgage broker before renewing their mortgage—and how Sherwood Mortgage Group’s experts can help you make confident, informed decisions.

1. What’s the Best Rate Available—Beyond My Current Lender?

Canadian banks and lenders don’t always offer their best rates upfront. In fact, renewal letters are often set at higher-than-market rates. Your mortgage broker can shop the entire Canadian lending landscape, including banks, credit unions, monoline lenders, and alternative lenders.

At Sherwood, our brokers compare offers from trusted lenders across Canada, making sure you never settle for a rate that’s less than you deserve.

2. Should I Choose a Fixed or Variable Rate Based on the Bank of Canada Outlook?

The Bank of Canada’s policy rate heavily influences mortgage rates in Canada. Choosing between fixed and variable isn’t just about numbers—it’s about lifestyle, risk tolerance, and timing.

Sherwood’s experienced brokers can walk you through current market trends and provide personalized advice to help you choose the structure that fits your goals, not just the lowest headline rate.

3. What’s the Penalty If I Break This Mortgage Early?

Canadian mortgages can include prepayment penalties, and not all lenders calculate them the same way. Whether it’s an IRD on a fixed mortgage or three months’ interest on a variable, understanding the cost of flexibility is key—especially if you’re thinking of moving or refinancing in the near future.

Sherwood experts will help you understand how each lender handles penalties and find mortgage terms that align with your long-term plans.

4. Can I Use My Renewal to Consolidate Debt or Access Equity?

Your renewal is a great opportunity to re-evaluate your full financial picture. If you have equity in your home and are carrying high-interest debt, this may be the right time to consolidate and reduce monthly expenses.

Our team at Sherwood can help assess your current equity, explore refinance or HELOC options, and structure a solution that improves both your cash flow and peace of mind.

5. What Are the Costs of Switching Lenders in Canada?

Switching can unlock savings, but it may come with costs like appraisals, legal fees, or discharge charges. Some lenders may offer incentives, such as appraisal rebates, but not all.

A Sherwood broker will break down all potential costs, compare your options, and tell you honestly if staying with your current lender makes more sense.

Bonus: Are You Still Eligible Under Today’s Stress Test Rules?

When renewing with a new lender, you’ll need to re-qualify under the federal stress test, even if your financial situation hasn’t changed. That means qualifying at the greater of 5.25% or your contract rate plus 2%.

Sherwood’s team stays current on all CMHC and federal qualification guidelines and will help ensure you meet eligibility—before you commit to a switch.

Mortgage renewals are a critical moment—especially in Canada’s fast-changing housing and interest rate environment. By asking the right questions and working with a broker who advocates for you, you can lock in the best solution for your next term.

Sherwood Mortgage Group’s experienced brokers are here to simplify the process, uncover better options, and ensure your mortgage keeps working for your life—not the other way around.

Renewing soon? Let Sherwood Mortgage Group guide you through your options and make your renewal stress-free and financially rewarding. Reach out today for a personalized renewal review—no pressure, just expertise.