Your bank's renewal offer is rarely their best offer.

Banks send renewal letters at the rate they believe you'll accept without asking questions. Retention rates on renewals are high. Most clients sign within days. The bank doesn't need to offer their best rate because most clients don't ask for it.

The rate on your renewal letter is a starting point for a negotiation you haven't had yet. We can find out in short order whether it's competitive, and if it isn't, what your options look like.

Most lenders allow you to lock in a renewal rate up to 120 days before your mortgage matures. That window exists for you to shop the market. Use it. If you wait until your maturity date, you lose negotiating leverage and may be forced into whatever rate is available at that moment.

We typically recommend starting the conversation 90 to 120 days out. That gives us time to look at competing options, go back to your current lender if warranted, and close on the right product without rushing.

At renewal, you can move your mortgage to a different lender without paying a penalty. This is one of the few times in a mortgage term when you have real leverage, and it's leverage most people don't use.

Switching does involve some paperwork: a new application, an appraisal in some cases, and legal fees (typically covered by the new lender as part of their incentive to earn your business). The process is less complicated than most people expect.