I Received An Early Mortgage Renewal Offer Six Months Early. Should I Renew?

Alex Leite

Feb 133 min read

Early Mortgage Renewals

With a record number of renewals up in 2025, many people will ask themselves:

"Should I renew my mortgage early or wait for my maturity date?"

Generally, the answer to that as of 2025 is a resounding NO. Let me explain.

Early Renewal Secret

Generally, their first (6-month out rate) is higher than what you can actually get at your renewal date.

Banks usually offer you a higher posted rate when they send out that renewal notice six months early. I saw this firsthand at Scotiabank when I helped with renewals. They start high, hoping you don't negotiate down and take the posted rate.

With that said, I've been hearing that the online rates (online banking and mobile banking) are better than what they can offer in the branch for the early renewal options.

I can't be 100% sure that these online offers will still be what you should expect to receive if you wait until your maturity date, but that's what I'm hearing. I'm guessing banks are happy to give a discounted rate online because they don't need to pay anyone (Financial Advisor/Employee) to help you with the renewal. Even if they lose out on the interest rate, they make it back with less payroll.

Renew Early Or Hold On Until Your Renewal Date?

So that leaves you with the question: what happens if you wait until your maturity date later in 2025?

It's a good question.

Rates are expected to drop over the next six months. If you've got a super low rate now, like 2.5%, there's no rush to lock into something higher. Check out my article here if you want to see what the latest predictions are.

In other words, if your mortgage is up for renewal, and your current interest rate is 2.5%, wait. Whether you're renewing into a 4.5% or 4.25%, keeping that low rate for as long as possible is your best option.

Fixed Interest Rate Versus Variable Interest Rate

If you're going with a variable rate, then waiting doesn't make too much of a difference because you'll ride the rate wave down.

That said, once you lock in a fixed rate, you're stuck with it unless you pay a big penalty to refinance. If you're moving from a low fixed rate to a higher variable, like from 2.5% to 4.5%, hanging onto your current rate is the way to go.

The same rule applies, though, if you have a low rate at the moment and are going to renew into the variable. Don't give up your 2.5% for a 4.5% variable rate.

Feel free to let me know your thoughts in the comment section below!

TL;DR:

Don't rush to renew your mortgage in 2025; rates might be lower if you wait.
Early renewal rates from banks are typically high; better deals might be found online.
If you have a low rate now, keep it until your mortgage matures, especially for fixed rates.