With interest rising in 2022 to combat inflation and the Bank of Canada hinting at more potential rate hikes in 2023, you might not be looking forward to your renewal date if it’s coming up this year. It’s not all bad news though, as you can still make some good choices and save yourself a lot of money down the road by not falling for some common pitfalls of mortgage owners. 

You’ll also want to keep an eye on the market and see how mortgage rates are trending to determine if it’s potentially the right move for you to break your mortgage early and lock in a rate if you’re a variable holder. When you sign-up for Perch we give you automated homeowner insights, like telling you when it makes sense to break your mortgage for optimal savings.

If your mortgage is coming up for renewal in 2023 then here are 5 things you should know to make sure you’re coming out on top.

1. You don’t have to go with the same lender

While you might have been planning to let your mortgage auto-renew with your existing lender, this definitely isn’t the only option, and it’s also not likely to be the best one as lenders don’t provide much incentives for borrowers to stay with them. The fact that the path of least resistance is the one most often taken is all lenders need to ensure that most of their borrowers stick to the same lender. This doesn’t have to be the case however, and it can make sense in a lot of cases to shop around and renew with a different lender if you find a better rate or mortgage terms that suit your plan better. Switching mortgage lenders during your renewal is as simple as applying and qualifying with the new lender, the mortgage specialists will handle everything else on the back end so there’s no extra work from you.

2. The first option usually isn’t the best

There’s a tendency among home buyers who are inexperienced in the market to go with the most popular option, which is getting a mortgage from one of the big 5 banks. A lot of times this just comes down to not knowing about the other options. If you’re not familiar with the differences between a mortgage broker and a bank, you should know that by shopping around for mortgage offers you can save thousands over the length of your mortgage.

It’s always worth the time to talk to a mortgage advisor and plan out the best strategy for your renewal before you do it to make sure you’ve got a mortgage that suits your needs. 

3. Mortgage rates will likely trend upwards in the first half of 2023

While inflation has begun to slow after the Bank of Canada’s rate hikes, it hasn’t slowed enough, and our mortgage analysts are predicting that interest rates will continue to rise for the first half of 2023 at the minimum. We predict that by Q3 of this year, interest rates will have risen another 0.5% with the possibility for rates to start to come down only beginning at the end of the year. With that being said, if you’re looking to renew your mortgage in 2023, you might want to keep in mind that rates have been trending upwards.

4. How mortgage renewals work

This probably goes without saying, but if you weren’t exactly clear on the details of the mortgage renewal process, now is the time to brush up. This article goes over some common questions people have about the mortgage renewal process. Some key things to remember: it’s simple to shop around with different lenders by submitting your information and talking to a mortgage specialist, and if you let your mortgage end without renewing your lender will likely auto-renew your mortgage at a rate that isn’t in your favour.

5. You can change your mortgage terms

Most homeowners opt with a standard 5-year fixed rate mortgage but when it comes time to renew there’s no reason you can’t renew with different mortgage terms. If you’re convinced that mortgage rates are likely to fall in the next few years you might opt to go with a 5-year variable rate mortgage instead. On the other hand if you’re worried about the Bank of Canada increasing rates further in 2023, you might choose to go for a fixed rate mortgage. You can also go with a shorter term if your financial situation is likely to change soon. Going with a 3-year or even a 1-year mortgage is possible when you renew.

If your mortgage renewal is coming up in 2023, the most important thing to remember is to do your research and plan out your mortgage strategy to make sure you’re taking on the right mortgage for your situation. If you want help planning your mortgage renewal, our mortgage specialists are available to help you when you sign-up for Perch today.


Welcome to homeownership, simplified. Get support at every step.

Sign up for free