What happens if I don't sign my mortgage renewal offer?
Real Mortgage Associates · FSRA #10464
Your mortgage automatically converts to the lender's default renewal product — usually an open or short-term posted-rate mortgage at 6%+, one of the most expensive rates on the sheet. You retain full flexibility to switch, but every month at the posted rate costs meaningful interest. Decide before term end.
The auto-renewal is designed to be so unattractive that you'll pick up the phone. On a $500,000 balance, one month at 6.5% versus 4.5% costs about $850 extra in interest. Two months of drift can wipe out a year of careful shopping.
If you know you'll be late deciding — for example, waiting on a broker's application — call your existing lender and ask to lock into a short-term closed product (6 months, 1 year) rather than accepting the auto-renewal. It buys time without the posted-rate penalty.
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Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8