You found your first home, got through closing, and settled in. Now your mortgage term is coming to an end and a renewal notice is on its way. So what does the mortgage renewal process actually look like? We have partnered with our friend Paul Gazzola – Guelph Mortgage Architects to answer the most common questions we hear from Guelph and Centre Wellington homeowners approaching renewal.

How does a renewal work?

A few months before your mortgage matures, your current lender will send you a renewal offer. Before you sign anything, we review your plans and overall strategy to decide the best approach at renewal. We then shop the market to see if better or more competitive options are available. If your current lender’s offer is still the best fit, we’ll guide you through signing back with confidence. If not, we’ll help you explore lower rates or better options. Most of our lenders cover the legal fees if you switch to a new lender at renewal.

What do I need to do as a client?

About 120 days before your mortgage maturity date, simply reach out to us. If you haven’t received your renewal agreement from your current lender, we’ll ask you to request it. From there, we handle everything, including reviewing your options, comparing rates and terms, preparing the necessary paperwork, and guiding you through the entire process to ensure a smooth and confident renewal.

Should I shop around?

Yes, and that’s exactly what we do for you. We work with over 50 lenders including banks, credit unions, and monoline lenders to find the best rate and terms available. Shopping around can help you secure a lower rate, more flexible repayment options, or features that better match your financial goals. By handling this on your behalf, we save you time and ensure you’re seeing all the options the market has to offer, so you can make an informed decision with confidence.

How far in advance should I prepare for the renewal?

About 6 months before your renewal, it’s a good time to talk about your plans. At 120 days before the renewal date, we can begin securing a rate hold with other lenders.

What if my financial or job circumstances changed?

This is very common. If your income, job, or finances have changed, we simply update your application with the new information. We’ll walk you through the possibilities, discuss how these changes may affect your mortgage, and help you find the best path forward so you feel confident and prepared for your renewal.

Do I need to be saving money in anticipation of the renewal?

During your mortgage term, most lenders allow you to pay down 15 to 20% of your mortgage each year through increased scheduled payments or lump sums. At renewal, you can pay down as much as you like without penalties, which can help lower your payments and interest costs. Mortgage rates at renewal may increase or decrease, so if you’re concerned about higher payments, prepayment privileges are one way to manage them. Other strategies, like adjusting your amortization or exploring different term options, can also help keep your payments manageable while making the most of your mortgage.

Qualification and re-qualification, what are lenders looking for?

Whether you’re applying for a new mortgage or re-qualifying at renewal, lenders review your income, credit, debts, down payment or equity, and home value or purchase price. For new mortgages, this determines how much you can borrow; for renewals, it ensures your mortgage still meets lender requirements. This is where we come in: we review all of these factors with you ahead of time, identify potential challenges, and help structure your application to maximize your options. We also explore programs and strategies that could save you money, make payments more manageable, or improve your terms, so you feel confident and prepared whether you’re buying a home or renewing your mortgage.

What happens if I can’t get approved again?

If you’re not able to re-qualify with your current lender, don’t worry, it doesn’t mean the end of the road. There are programs and lenders that specialize in helping homeowners in all kinds of situations. We’ll take a look at your options, explain what’s available, and work with you to find a practical solution that keeps you moving forward.

Renewing your mortgage doesn’t have to mean simply accepting what lands in your mailbox. With the right guidance, it’s an opportunity to make sure your mortgage still fits your life and your goals.

About Paul Gazzola, Mortgage Architects

Paul Gazzola and his team are mortgage brokers and agents at Guelph Mortgage Architects. Their goal is to help clients secure financing tailored to their unique situation. With access to over 50 lenders, including major banks, credit unions, and monoline lenders, they provide the ability to compare mortgage options, rates, and terms to find the best fit. You’ll receive expert guidance at no cost, as their services are paid by the lender only once your mortgage successfully closes.

About Nick FitzGibbon & The Let’s Talk Real Estate Team

Nick FitzGibbon is a trusted Guelph realtor specializing in residential real estate in Guelph and Centre Wellington. With a data-driven approach and deep local market knowledge, Nick helps buyers and sellers make confident, informed decisions in changing market conditions.

Nick is the Team Lead of the Let’s Talk Real Estate Team, working alongside experienced real estate professionals including John Clark, Collette Aeschlimann, Dave Aubrey, and Jeff Basso. Together, they provide comprehensive support throughout the buying and selling process across Guelph and Centre Wellington, ensuring every client receives personalized attention and expert guidance.