“I’ll Just Renew My Mortgage” - The Expensive Lie Banks Hope You Believe

getmortgaged
17 minutes ago
2 min read

“Your mortgage is up for renewal. We’ll handle the paperwork.”

Sound familiar?

That’s the email most Ontario homeowners get at renewal time, usually from their current lender. And what do most people do? They sign it.

No negotiation. No restructure. No strategy. They just keep going… on the bank’s terms.

This post is your wake-up call: “just renewing” might be the most expensive financial move you’ll make this decade.

❌ The Myth: Renewing Is Automatic and Harmless

Here’s what the banks want you to believe:

“You don’t need to reapply. Your mortgage will renew seamlessly.”

Translation:

“We’ll quietly lock you into a new term with a rate and structure that serves us, not you.”

There’s no new underwriting, sure. But that doesn’t mean it’s a smart move. You’re still agreeing to a fresh 1–5 year commitment, often with:

A higher interest rate
Outdated amortization
A product that doesn’t match your life anymore

And most homeowners? They don’t even know they had other options.

✅ The Truth: Renewal Is a Golden Restructuring Window

When your mortgage comes up for renewal, you can:

Switch lenders without penalty
Restructure your mortgage (amortization, product, payment style)
Consolidate debt if you’ve got equity
Access better cash flow tools like a re-advanceable mortgage

It’s one of the few windows where you’re in control, not the lender.

Here’s What Most People Miss at Renewal:

🔹 You’re Sitting on Untapped Equity

If you bought 5+ years ago, your home likely appreciated, but you’re not using that equity to clean up other high-interest debt.

🔹 Your Amortization May Be Off

If you didn’t restructure during rate hikes, your payments may be tight and your payoff timeline worse than before.

🔹 You Could Be on the Wrong Product

A fixed 5-year might’ve made sense then — but maybe now a HELOC or hybrid mortgage (like Manulife One) gives you more control.

5yr chart of potential cost savings with a debt consolidation.

Case in Point:

Family A renewed their $600,000 mortgage without review. They ignored $40,000 in credit card and car debt at 14–20%. Now they’re paying over $2,000/month in minimums on top of the mortgage.

Family B did a 30-minute review. They restructured their mortgage at renewal, consolidated that $40K at 5.5%, and freed up $1,100/month in cash flow.

🧠 Remember: You’re Not Stuck With the Same Lender

If your lender isn’t offering a better structure, better terms, or even guidance, you owe them nothing. You can switch, restructure, and finally optimize your biggest monthly bill.