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The offer arrives by mail with a date on it. It is not the market rate.

What a renewal offer actually contains, why it is what it is, and the one thing to do before signing.

The CompareTaux teamReading: 4 min

What it is

An offer designed to keep you, priced on the likelihood you will sign without comparing. It is not dishonest: it is simply set in the absence of competition.

Why the window matters

At renewal, the penalty for changing lenders is generally nil. It is the only point in the cycle when you can leave at no cost, and that is precisely why the offer arrives then.

What nobody asks you

No one asks whether your term still fits, whether your payments could be accelerated, whether you will need cash within the year, or whether your prepayment privileges are adequate. The form asks one question: will you sign?

The one thing to do

Get a point of comparison before the date. Without one you are not negotiating: you are accepting. Note the maturity date months ahead, not the week the envelope lands.

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