Mortgage Renewal in Markham

Key Takeaways:

• Start shopping 120 days before your renewal date to lock in the best rate and maintain maximum negotiating leverage
• Switching lenders at renewal is penalty-free – the new lender typically covers legal and registration costs
• Even a 0.25% rate improvement on a $500,000 mortgage saves thousands over a five-year term
• CMS compares rates across 50+ lenders so you never have to wonder if a better option existed

Why You Should Never Just Sign the Renewal Slip

Banks and monoline lenders count on inertia. Industry data consistently shows that a majority of Canadian mortgage holders sign their renewal offer without comparing alternatives. Lenders understand this behavioural pattern and price their initial renewal offers accordingly – offering rates that are competitive enough to avoid triggering a comparison, but not aggressive enough to represent the best deal available.

The math of even a modest rate difference is striking. On a $500,000 mortgage balance, a rate reduction of just 0.25% saves roughly $625 in interest per year, or more than $3,100 over a typical five-year term. Push that difference to 0.50% and the savings double. For many Markham homeowners whose mortgage balances sit well above $500,000 – reflecting the city's higher property values – these numbers grow proportionally larger.

The opportunity cost of not shopping is real money that stays in the lender's pocket rather than yours. And because switching lenders at renewal time carries no prepayment penalty, the friction of moving is minimal. CMS handles the paperwork, coordinates with both lenders, and ensures the transition is seamless.

The Ideal Renewal Timeline

The best renewal outcomes start with early planning. Here is the timeline CMS recommends for Markham homeowners approaching the end of their mortgage term.

At the 120-day mark before maturity, begin the rate comparison process. Most lenders will issue a rate hold that locks your rate for 90 to 120 days, protecting you from increases while you continue shopping. Contact CMS at this stage and we will pull current rates from across our lender network and present your options.

By the 90-day mark, you should have a clear picture of whether staying with your current lender or switching delivers the better outcome. If switching, the application and approval process typically takes two to three weeks, leaving plenty of buffer for any documentation follow-ups or scheduling adjustments.

At the 30-day mark, everything should be finalized. If you are switching, the new lender's lawyer will coordinate the discharge from your current lender and the registration of the new mortgage. If you are staying, you will have negotiated the best rate your current lender is willing to offer, informed by the competing offers you received through CMS.

Waiting until your lender sends the renewal slip – often just 30 days before maturity – puts you in a reactive position with limited time to explore alternatives. Starting early flips the dynamic and gives you leverage.

Switching Lenders Versus Staying Put

Switching at renewal simply means your new lender pays off your old lender and registers a fresh mortgage. For straight switches where the mortgage amount stays the same, many lenders cover all legal and registration costs, making the switch effectively free for you. The process takes a few weeks and requires minimal documentation beyond updating your income verification.

Staying with your current lender requires even less paperwork – often just your signature. But convenience should not be the deciding factor when thousands of dollars are on the line. The only scenario where staying unquestionably makes sense is when your current lender matches or beats every competing offer after negotiation.

CMS uses the rate offers from competing lenders as negotiation ammunition with your current lender. In many cases, the simple act of presenting a better offer from a competitor prompts your existing lender to improve their renewal rate. Whether you ultimately stay or switch, the comparison process benefits you financially.

Renew Versus Refinance: Timing It Right

Your renewal date is also the most cost-effective time to refinance if you need to access equity, consolidate debt, or restructure your mortgage. Because no prepayment penalty applies at the end of the term, the only costs associated with a refinance at renewal are the appraisal fee, legal fees, and any discharge fee from your current lender – typically totalling a fraction of what a mid-term refinance would cost.

If you have been thinking about tapping your Markham home equity for renovations, a debt consolidation, or an investment property down payment, coordinating that move with your renewal eliminates the penalty that would otherwise apply. Many CMS clients time their equity strategies specifically around their renewal date for this reason.

Conversely, if your only goal is a better rate with no changes to the mortgage structure, a simple renewal or switch is faster and involves less documentation. CMS helps you determine which path serves your needs best.

Fixed Versus Variable at Renewal

Every renewal is an opportunity to reconsider your rate type. If you spent the last five years in a fixed-rate mortgage, the variable option might now be worth considering – and vice versa. The decision depends on the current rate environment, your personal risk tolerance, and how long you plan to stay in the property.

Fixed rates provide certainty: your payment stays the same for the entire term regardless of what happens in the broader economy. This stability is valuable for Markham families on tight budgets or those who simply prefer knowing exactly what their housing cost will be each month.

Variable rates are tied to the lender's prime rate and can fluctuate with Bank of Canada decisions. Historically, variable rates have tended to cost less than fixed rates over complete economic cycles, but they carry the risk of increasing during the term. Some lenders offer variable rates with fixed payments – where the payment stays constant but the principal/interest split adjusts – while others pass rate changes through to the payment amount directly.

CMS provides guidance on the fixed-versus-variable decision based on current market conditions and your individual circumstances, without pressure to choose one over the other. The goal is always to match the product to your risk profile and financial objectives.

How the CMS Renewal Process Works

The process begins with a conversation about your current mortgage – the balance, rate, term expiry date, lender, and any features like prepayment privileges or portability that matter to you. We then pull live rates from our network of fifty-plus lenders and present a comparison showing your current lender's offer against the best alternatives.

If switching makes sense, we handle the full application – collecting updated income documentation, coordinating the property valuation if needed, and managing communication between the old and new lender. On your end, the commitment is minimal: a few documents and a signature. We do the rest.

If staying with your current lender after negotiation is the best outcome, we are equally satisfied. Our role is to ensure you make an informed decision, not to push you into a switch for the sake of it. There is no cost to you for the comparison – our compensation comes from the lender on funded transactions.

Start Your Renewal Review

If your Markham mortgage is coming up for renewal within the next four to six months, now is the time to start the comparison process. Even if your renewal is further out, CMS can provide a rate watch and alert you when conditions become particularly favourable for locking in.

Call us at 905-455-5005 or fill out the form above to begin. Within one conversation, you will know exactly where you stand and whether your lender's offer is competitive – or whether thousands of dollars in savings are waiting with a different lender. Since 1988, CMS has helped Ontario homeowners keep more of their money at renewal time, and we would welcome the opportunity to do the same for you.