If your mortgage is coming up for renewal soon, you may have a great opportunity to secure a lower rate — but timing is key.
Most lenders allow you to lock in a new rate up to 120 days (about four months) before your current mortgage term ends. This “rate hold” protects you from potential rate increases while still giving you the chance to benefit if rates drop before your renewal date.
Here’s how to make the most of it:
- Start early. Contact your mortgage broker about four months before your renewal. This gives you time to compare rates and options.
- Shop around. Don’t automatically accept your current lender’s renewal offer. A broker can help you find competitive rates across multiple lenders.
- Review your financial goals. If your situation has changed — such as higher income, new debts, or plans to move — your broker can tailor your renewal to fit your needs.
- Get pre-approved for a new rate. Once you lock it in, you’re protected from rising rates until your renewal date.
Even a small difference in your mortgage rate can save you thousands of dollars over the life of your loan. Talking to a mortgage professional before your renewal ensures you’re not leaving money on the table.