I’ve been getting calls from clients who sound confused.

Their bank called them. Six months before their renewal date. Offering to lock in a rate early.

The pitch sounds helpful. “Rates might go up. Lock in now. Protect yourself.”

Some lenders are using global events (conflicts in the Middle East) to push you into quick decisions.

Here’s what you need to know: early renewal offers aren’t always in your best interest.

Why Banks Are Calling Early

Let me be direct about this.

When your bank calls you six months before your renewal, they aren’t doing this out of kindness. They’re doing this because 90.4% of mortgages renew at the same lender.

That’s a staggering number.

Your existing lender knows something: if they get you to sign early, you won’t shop around. And if you don’t shop around, they don’t need to offer you their best rate.

The data backs this up. According to research, you could save $13,857 on average by switching with a broker versus renewing with your bank.

That’s not a small number. That’s a vacation. A car. Part of your kid’s education.

The 2026 Renewal Wave

Here’s the context banks aren’t sharing.

Roughly 1.2 million Canadian mortgages are expected to renew across 2025 and 2026. About 60% of all outstanding mortgages will renew during this period.

Many of these homeowners locked in at historically low rates back in 2021. Now they’re facing what the industry calls the “renewal wall.”

People who had rates at 1.79% are seeing renewal offers closer to 4.29%.

That’s a payment shock. And banks know it.

They’re being proactive. Calling early. Creating urgency. Using external events as leverage.

What the Fine Print Says

I’ve reviewed dozens of these early renewal offers.

Here’s what most people miss:

The rate isn’t always competitive. Just because your bank offers you 4.29% doesn’t mean that’s the best available rate. Right now, the lowest 5-year fixed rate in Canada is 3.94%, with 3-year terms as low as 3.59% in some provinces.

You might be locking in too early. Rates change significantly in six months. If rates drop, you’re stuck. If they rise, you might have been better off waiting and comparing options closer to your renewal date.

The terms matter as much as the rate. Prepayment privileges, penalty calculations, portability options. These all affect the true cost of your mortgage. A slightly higher rate with better terms saves you money over time.

You’re giving up negotiating power. By law, your lender must provide you with a renewal statement at least 21 days before your term ends. But you have up to 120 days to start the renewal process. Time to shop, compare, and negotiate.

The Default Insurance Advantage

Here’s something most homeowners don’t know.

If you have a default-insured mortgage from CMHC, Sagen, or Canada Guaranty, and you haven’t refinanced, you have an advantage.

The insurance transfers to any mainstream lender you switch to. You get access to the lowest rates because the lender’s risk is protected.

As of November 21, 2024, OSFI slashed the stress test requirement for homeowners with uninsured mortgages who switch lenders at renewal. Homeowners with insured mortgages were already exempt.

This makes switching easier than ever.

But only if you look.

Why Independent Advice Matters

I’ve been doing this for 18 years.

I’ve seen every version of this play. The early renewal pitch. The “special offer” expiring tomorrow. The fear-based urgency.

Here’s what I know: mortgage brokers work differently than banks.

We don’t work for one lender. We work for you.

We have access to 20+ lenders (including broker-only lenders with rates and terms you won’t get by walking into a bank branch).

We compare options. We explain the differences. We help you understand what you’re actually signing.

According to Bank of Canada research, people who use a mortgage broker typically save more money. The proportion of consumers using brokers increased from 43% in 2023 to 48% in 2024.

That’s not an accident.

What to Do Instead

If your bank calls with an early renewal offer, here’s my advice:

Don’t sign anything immediately. Thank them for the call. Ask them to send the details in writing. Then take time to review it.

Start shopping four to six months before your renewal. This gives you time to compare rates, understand your options, and decide without pressure.

Get independent advice. Talk to a mortgage broker who can show you what’s available across multiple lenders. Compare the bank’s offer against the market.

Look beyond the rate. Ask about prepayment options, penalty calculations, and whether the mortgage is portable if you move.

Know your leverage. If you have a default-insured mortgage, you have more options. Use them.

The Real Cost of Convenience

I get it. Renewing with your existing bank is easy.

They already have your information. You don’t need new paperwork. You sign the renewal letter and you’re done.

But convenience has a price.

Over 28% of homeowners are now switching to a better deal at renewal. That’s up about 46% from a year ago.

These aren’t people chasing pennies. They’re people who did the math and saw a few hours of effort would save them thousands.

Your mortgage is your largest financial obligation. Give this more attention than a signature on a renewal letter.

A Different Approach

At Jennings & Associates, we don’t wait for renewal letters to arrive.

We reach out to clients proactively. We review their situation months in advance. We shop rates across our entire lender network.

We explain the options in plain language. No jargon. No pressure. Honest advice about what makes sense for your situation.

Here’s what I believe: you don’t need a perfect file. You need the right plan.

And the right plan starts with understanding all your options, not the one your bank is offering.

The Bottom Line

Early renewal offers aren’t bad.

Sometimes they make sense. If rates are rising and you’re getting a competitive offer with good terms, locking in early works.

But you won’t know if the offer is competitive unless you compare what else is available.

Don’t let urgency override due diligence.

Don’t let external events (wars, economic uncertainty, market volatility) pressure you into a decision you haven’t fully evaluated.

And don’t assume your bank is offering their best rate because they called you first.

Your mortgage renewal is an opportunity to save money, improve your terms, and make sure your mortgage still fits your life.

Take it seriously.

If you’re facing a renewal in the next 6-12 months, we should talk. We’ll review your current mortgage, compare what’s available, and help you decide based on facts, not fear.

Call us at (709) 300-4518 or visit www.jenningsmortgage.com.

Because good people deserve great mortgages. And great mortgages start with knowing all your options.