Mortgage Renewal Tips for 2025: How to Negotiate a Better Rate
By Dave Oliver Mortgage Broker Saskatoon
Your mortgage renewal is one of the most overlooked opportunities to save thousands — yet many Canadians simply sign their lender’s first offer. In 2025, with rates stabilizing and lenders competing harder, Saskatchewan homeowners have more negotiating power than ever.
1. What Is a Mortgage Renewal?
A mortgage renewal occurs when your mortgage term ends and you either renew with your current lender or switch to a new one. You don’t reapply from scratch, but your lender reviews credit and payment history before offering new terms.
2. When Should You Start Renewal Planning?
Start preparing 120–180 days before your term ends. This gives your broker time to shop rates, lock in a 120-day rate hold, and negotiate with lenders.
3. What to Expect from Lenders in 2025
The 2025 market is stable and competitive. Fixed rates average 4.79–5.09%, variable 5.45–5.65%, and many lenders cover transfer fees to attract clients.
4. Why You Shouldn’t Automatically Accept Your Lender’s Offer
Your lender’s first renewal offer is rarely their best. You could pay 0.25–0.75% more than necessary. Compare offers through your broker for better terms.
5. What a Mortgage Broker Can Do for You
A mortgage broker works for you, not the bank. They compare 20+ lenders, find renewal discounts, review your goals, and handle paperwork.
Comparison of Renewal Approaches
Renewal Approach | Typical Result |
Sign lender’s first offer | Higher rate, limited flexibility |
Negotiate through broker | Lower rate, better term and perks |
Switch to new lender | Best rates and features |
6. Renewal Options to Consider in 2025
Option | Best For | Benefit |
Stay with current lender | Satisfied clients | Quick process, no new app |
Switch lenders | Rate-conscious borrowers | Lower rate, better flexibility |
Refinance | Need equity access | Consolidate debt or renovate |
Shorten amortization | Goal-driven buyers | Pay off faster |
Blend & extend | Variable holders | Mix old/new rates for savings |
7. Common Mistakes to Avoid During Renewal
Renewing automatically without comparing offers.
Focusing only on rate, ignoring flexibility.
Missing the 120-day window for better deals.
Not asking for a broker-assisted rate match.
8. Questions to Ask Before Renewing
What’s the lowest rate available and how long is it guaranteed?
What are penalties if I break early?
Can I make lump-sum payments without fees?
Should I choose a shorter or longer term?
How does switching lenders affect my credit or costs?
9. Case Study: A Renewal Success Story
Client: Sarah & Mark, Saskatoon
Mortgage Balance: $420,000
Bank Offer: 5.29% fixed
Broker Offer: 4.74% fixed
Result: Monthly savings $180, 5-year savings $10,800, free transfer fees covered by new lender.
10. Fixed vs Variable at Renewal
Type | Pros | Cons |
Fixed | Stable payments, predictable budget | Slightly higher rate |
Variable | Flexible, potential for lower cost | Payment fluctuations |
Hybrid | Best of both worlds | More complex setup |
Final Thoughts
Your mortgage renewal is your chance to renegotiate — not just re-sign. Whether you stay with your lender or switch, the goal is to save money and improve flexibility.
At Dave Oliver Mortgage Broker Saskatoon, we compare rates from banks, credit unions, and lenders to ensure you get the best renewal rate for 2025.
Contact Us
Call: (306) 227-7367
Request a Quote: https://saskatoonmortgagebroker.net
Email: dave.oliver@mortgagegroup.com