Mortgage renewal is a critical point in your homeownership journey in Peterborough, ON, offering an opportunity to re-evaluate your financial needs and secure the best possible terms for your next mortgage term. Unlike refinancing (which involves breaking your current mortgage to get a new one, often with fees), renewal happens at the end of your existing mortgage term.

Here's a guide to navigating your mortgage renewal in Peterborough:

What is Mortgage Renewal?

At the end of your mortgage term (typically 1 to 5 years), you'll need to either pay off the remaining balance in full or sign a new mortgage contract for another term. This process is called mortgage renewal. Your current lender is legally required to send you a renewal statement at least 21 days before your term ends. This statement will outline the new interest rate, payment frequency, term, and any applicable fees.

Why It's Important to Shop Around:

While your current lender will offer you a renewal, it's often not their most competitive rate. They rely on the convenience factor, assuming you'll simply sign the offer. It's crucial to negotiate and shop around. By getting quotes from other lenders, you can often secure a better rate and save thousands of dollars over your next term.

Key Steps for Mortgage Renewal in Peterborough:

1. Start Early (3-4 Months Before Renewal): Don't wait until the last minute. Begin exploring your options several months before your renewal date. This gives you ample time to research rates, compare offers, and negotiate. Some lenders even allow you to renew up to six months early without prepayment penalties, potentially locking in a favourable rate.
2. Assess Your Financial Situation and Goals:
   • Has your income changed?
   • Do you have any new debts you'd like to consolidate?
   • Are you planning major renovations?
   • Do you want to shorten your amortization period to pay off your mortgage faster, or extend it to lower monthly payments (which may mean paying more interest over the long term)?
   • Are you comfortable with a variable rate, or do you prefer the stability of a fixed rate?
3. Gather Necessary Documents:

If you're staying with your current lender and not changing your terms, you may not need many documents. However, if you're switching lenders or making significant changes, you'll likely need:

3. • Your current mortgage statement
   • The renewal letter from your current lender
   • Proof of income (pay stubs, employment letter, T4s/T4As, Notice of Assessment from CRA)
   • Property tax statement 
   • Homeowner's insurance policy
   • (If applicable) Gift letter for down payment
4. Compare Rates and Options:
   • Contact Your Current Lender: See what they're willing to offer. Be prepared to negotiate and tell them if you've received better offers elsewhere.
   • Contact Other Banks and Credit Unions: Contact major banks and local credit unions in Peterborough to get their best rates.
   • Work with a Mortgage Broker: This is often the most effective approach. Mortgage brokers work with a wide range of lenders (including banks, credit unions, and private lenders) and can access rates that might not be available to the general public.⁷ They can negotiate on your behalf and help you find the most suitable product for your needs. Many brokers in Peterborough specialize in renewals.
5. Consider Switching Lenders:

You are not obligated to renew with your current lender. Switching can often lead to a better rate. If you switch at renewal time, you generally won't incur a prepayment penalty from your old lender. However, the new lender might have fees such as:

• • Appraisal fees (typically $150-$500)
  • Legal fees
  • Discharge fees from your old lender
  • Registration or transfer fees

Ask if the new lender is willing to cover some or all of these costs to earn your business. Note that if you switch lenders, you may need to re-qualify for the mortgage, including potentially passing the mortgage stress test.

6. Review the Offer:

Carefully review all aspects of any new mortgage offer, including:

• • Interest rate (fixed vs. variable)
  • Term length
  • Amortization period
  • Payment frequency
  • Any penalties for early repayment or breaking the mortgage
  • All associated fees

Mortgage Professionals in Peterborough for Renewals:

Choosing The Right Mortgage Broker Makes All the Difference—Experience Matters!

With over 30 years of experience in finance, Mike Cara, your Ontario Trusted and Top-Rated Mortgage Broker in Peterborough, specializes in helping clients that most other brokers cannot help.

• • Mike Cara, Mortgage Broker in Peterborough, ON.
  • 398 McDonnel St., Unit 4, Peterborough, ON, K9H 2X4
• Banks and Credit Unions: Don't hesitate to directly contact your existing bank in Peterborough (e.g., RBC, Scotiabank, CIBC, TD, BMO) or other financial institutions with a presence in the city to see their offers.

Current Mortgage Rates in Peterborough (as of June 7, 2025):

Rates are dynamic, but to give you an idea, as of June 6, 2025, some competitive rates found for Peterborough include:

• 5-year fixed: Around 3.91%
• 3-year fixed: Around 4.24%
• 5-year variable: Around 4.05%

By being proactive and exploring all your options, you can ensure your mortgage renewal in Peterborough is an opportunity to optimize your financial situation.