Renewals & Refinancing
The renewal letter is an offer. You do not have to take it.
Signing your lender's renewal without comparing is the most common avoidable cost in a mortgage. A few hours of comparison can change what you pay for the next five years.
Your term is ending — or you need something different
Renewal coming up
Your term ends soon and your lender sent a letter. Before you sign it, find out what else is available.
Want to switch lenders
You are happy with your home but not your rate or your lender's service. A switch at maturity can be straightforward.
Need to access equity
You want to consolidate debt, fund a renovation, or invest. Refinancing lets you borrow against what you have built.
Renewal vs switch vs refinance
They sound similar but have different qualifying criteria, costs, and outcomes.
Renewal
You stay with your current lender on new terms. No re-qualification in most cases. Simplest path — but that simplicity is what lenders count on when they send an uncompetitive offer.
Switch (transfer)
You move the same balance to a different lender, often with the new lender covering legal and discharge costs. You will requalify under the new lender's criteria and the current stress test.
Refinance
You change the loan amount — to pull equity out, consolidate higher-interest debt, or fund a renovation. This is a new mortgage application with full qualification, appraisal, and legal costs.
What to know before you decide
When to start
Most lenders allow you to begin the renewal conversation roughly four months before maturity. Starting early gives you time to compare and, if rates are favourable, lock a rate hold that protects you while you decide.
Costs to expect
A straight switch at maturity often has minimal cost — the new lender covers legal fees in many cases. A refinance involves legal costs, a possible appraisal, and sometimes a discharge fee. Breaking mid-term triggers a prepayment penalty — the calculation differs between fixed and variable rates.
Prepayment penalties
If you break a variable-rate mortgage, the penalty is usually three months of interest. Fixed-rate penalties use the greater of three months' interest or an interest rate differential (IRD) calculation. IRD methods vary by lender and can produce surprisingly large numbers. Always request the exact penalty figure before making a decision.
Rate holds
A rate hold locks today's rate for a set period while you finalise your decision. If rates drop before closing, you get the lower rate. If they rise, you keep the held rate. This removes the pressure to rush.
Straight answers
Most lenders allow you to begin the renewal process roughly four months before your term ends. Starting early gives you time to compare, lock a rate hold, and switch lenders if that makes sense — without rushing.
On a straight switch (same balance, no new funds), the receiving lender often covers the legal and discharge costs. There may still be a discharge fee from your current lender. If you are breaking mid-term rather than switching at maturity, a prepayment penalty applies.
At renewal (maturity), you can refinance to increase the mortgage amount and access equity. This triggers a new qualification — the lender will re-assess your income, debts, and property value. It is a refinance, not a simple renewal, and has different costs.
Yes. A new lender will assess you against their criteria and the current stress test. In most cases, if your income and credit are stable, this is straightforward. If your situation has changed significantly, it is worth reviewing options before your term expires.
It depends on whether you have a fixed or variable rate. Variable-rate penalties are usually three months of interest. Fixed-rate penalties are the greater of three months' interest or an interest rate differential (IRD) calculation — and IRD methods vary by lender. Ask for the exact number before deciding.
Compare before you sign
Send your renewal letter and get a side-by-side comparison — no obligation, no credit pull at this stage.