Your Mortgage Renews in 2027. Here's What You Should Be Doing Now
If your mortgage renews sometime in 2027, that date probably feels far away. It is closer than you think, and the work you do in the next few months decides whether renewal day is a shrug or a shock. Here is how to use the lead time while you still have it.
If you took a five-year mortgage in 2022, or a shorter term since then, your renewal lands in 2027. For a lot of households, that means coming off a rate somewhere between 1.5 and 3 percent and renewing into a market that sits higher than that.
That is not a reason to worry. It is a reason to plan. Renewal is the one moment in your mortgage where change is free: no penalty, no breaking anything. But the good options go to the people who start early.
First, know your three numbers
Your renewal date. Your current balance. Your current rate.
Most people cannot tell you all three without digging. Find them now, while there is no clock running. Your lender's renewal letter will not show up until about 120 days before your date, and by then the easy planning window is half gone.
Run the payment before it runs you
Here is the math that matters, using round numbers. Say you owe $300,000 with 20 years left on your amortization, and you are paying 2 percent today. Your payment is about $1,518 a month.
Renew that same balance at 4.3 percent, roughly where the market sits now, and the payment becomes about $1,866. That is $348 more a month, or about $4,200 a year.
Your numbers will differ. The point is to see yours on paper this fall, not on a renewal letter next spring. A payment you have rehearsed is a payment you can plan around.
Use the lead time, it is the whole advantage
A few things are worth doing while you still have months instead of weeks:
Pay down expensive debt first. Credit cards and lines of credit cost far more than your mortgage, and lower balances help you if you decide to switch lenders.
Leave your credit alone. No new car loans, no new cards, no big financed purchases between now and renewal if you can help it.
Keep your paperwork where you can find it. If switching lenders makes sense, you will need recent pay stubs, a letter of employment, and your tax documents. Having them ready keeps a good rate from expiring while you hunt for papers.
If you can, start living on the new payment now. Put the difference aside each month. You build a cushion, and if you later drop it on the mortgage as a prepayment, your balance, and your renewal payment, both come down.
Do not sign the first offer just because it arrives
When that renewal letter does come, the rate in it is an opening offer, not a verdict. Lenders count on people signing it because it is easy. Many will do better when asked, and other lenders may do better still.
Renewal is also your chance to fix the structure, not just the rate. You can adjust your payment schedule, or move lenders, all without a penalty. For many insured mortgages, a straight switch to a new lender does not even require passing the stress test again.
And know this: many lenders let you renew up to 120 days early with no penalty. If your date is early in 2027, the conversation can happen this year.
Start with a review, not a rate quote
A rate is one line of the picture. The right renewal plan weighs your balance, your budget, your other debts, and how long you expect to stay in the home.
If your mortgage renews in 2027, call or email me this fall and we will map it out: your three numbers, what your payment looks like at today's rates, and whether staying, switching, or restructuring saves you the most. That review costs you nothing, and it is a whole lot easier to do with months to spare than with a letter on the counter and three weeks to decide.
Hopefully this helped bring a little clarity.
Mortgage decisions can feel overwhelming — especially with everything changing around us — but having the right information makes a big difference.
If you’re thinking about your next move, here are a few ways to keep going:
Tonia Mercer, Mortgage Broker - The Mortgage Missus Inc.- Premiere Mortgage Centre Inc.
About the author,
Tonia Mercer is seasoned mortgage broker. She has been in the industry for 18 years, in 2021 she launched her own brokerage The Mortgage Missus Inc.. Recently, to provide a wider range of products to her clients she decided to partner with Premiere Mortgage Centre. She hit the ground running and is exciting about the opportunities the move will bring to her and her clients.
Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers. Effectively creating a concierge service for all things financial and real estate.
Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission
She can be reached at tonia@themortgagemissus.ca
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