Mortgage Renewal Coming Up? Read This First

Mortgage renewals don't get as much attention as purchases, but for many homeowners they represent one of the most significant financial decisions of the year. If your renewal is on the horizon, here's what's worth knowing before you simply sign what your lender sends you.

Your Lender Is Not Your Only Option

When renewal time comes, most lenders send a renewal offer — sometimes quite early. It can feel easy to just sign and move on, but that offer is rarely their best rate. You have the right to shop around, and switching lenders at renewal does not require a full re-qualification in many cases. A mortgage broker can compare offerings from multiple lenders on your behalf, often at no cost to you.

Start Early

Most lenders allow you to lock in a rate 90 to 120 days before your renewal date. If you wait until the last moment, you lose negotiating leverage and may feel pressured to accept whatever is offered. Starting the conversation three to four months out gives you time to compare, negotiate, and make a thoughtful decision.

Fixed vs. Variable: Revisit the Conversation

Your financial situation, risk tolerance, and outlook may have shifted since you last chose between fixed and variable rates. What made sense five years ago may not be the right fit today. Take time to genuinely weigh the options rather than defaulting to what you chose before.

Think About Your Term Length

A five-year term is common, but it isn't always the best fit. If you anticipate significant life changes — a move, a renovation, a change in income — a shorter term might offer more flexibility. Understand what prepayment privileges and penalty structures come with each option.

Review Your Amortisation

Renewal is also a natural moment to consider whether you'd like to adjust your amortisation period or increase your regular payments. Even modest increases to your payment frequency or amount can reduce the total interest you pay over the life of the mortgage.

Get Professional Guidance

A mortgage broker or your financial adviser can help you understand your full picture. This newsletter provides general information only and is not a substitute for personalised financial or legal advice — always consult a qualified professional before making decisions about your mortgage.

Renewal doesn't have to be a rubber-stamp moment. Approached thoughtfully, it can be an opportunity to improve your financial position.