Don’t auto-renew. Negotiate.
Most homeowners sign the first renewal offer their lender mails out, and that offer is rarely the best rate available. Switching lenders at renewal is usually free, and on a $500,000 mortgage even a 0.40% lower rate can save you about $9,000+ over a five-year term.
- No stress test for straight switches: since November 2024, you can switch lenders at renewal without re-qualifying at the stress-test rate (same balance and amortization).
- Start 120–180 days early: lock in a rate hold well before your maturity date.
- Review your goals: renewal is a penalty-free chance to add funds, change amortization or switch between fixed and variable.
- Switch costs are often covered: many lenders pay legal and appraisal fees on transfers.