Renewing your mortgage might seem like a routine step—sign a few documents and carry on, right? Not quite. Your mortgage renewal is a valuable opportunity to reassess your financial goals, negotiate a better deal, and even save thousands of dollars over the life of your loan.
At Circle Mortgage, we’ve seen firsthand how small missteps during the renewal process can lead to big financial consequences. Whether you're renewing for the first time or it's your third round, avoiding these common mistakes can make all the difference.
Let’s dive into the top mistakes homeowners make when renewing their mortgage—and how to avoid them.
One of the most common (and costly) mistakes is simply signing the renewal offer from your current lender without exploring other options.
Why it’s a mistake:
Lenders often send renewal offers with higher-than-necessary rates—assuming most clients won’t shop around. If you accept without question, you could be locking in a rate that’s not competitive.
What to do instead:
Compare offers from other lenders or work with a mortgage broker like Circle Mortgage to shop the market on your behalf. We often help clients find better rates, terms, and flexibility than what they’re initially offered.
Time is your friend when it comes to mortgage renewals. Waiting until your renewal deadline is looming limits your ability to negotiate or explore alternative lenders.
Why it’s a mistake:
A rushed decision often leads to settling for less-than-ideal terms or missing out on savings.
What to do instead:
That gives you enough time to compare rates, gather documents, and lock in a better deal—especially if interest rates are on the rise.
Your life has likely changed since you first signed your mortgage—maybe you’ve switched careers, had children, or started a business. If you don’t take time to align your mortgage with your current goals, you could be missing out on opportunities to improve your overall financial health.
Why it’s a mistake:
Renewing without evaluating your broader goals could lead to inflexible terms or longer repayment periods than necessary.
What to do instead:
Ask yourself:
At Circle Mortgage, we help you reassess your mortgage based on where you are now, not where you were five years ago.
Renewal time is also the perfect time to refinance your mortgage—whether it’s to consolidate debt, fund home renovations, or access equity for other investments.
Why it’s a mistake:
Many homeowners don't realize that refinancing during renewal comes with little or no penalty, making it an ideal time to restructure.
What to do instead:
We’ll run the numbers and help you determine if accessing your home equity makes sense in your financial picture.
While securing a lower rate is important, it’s not the only thing that matters. Mortgage terms, prepayment privileges, portability, and penalties for breaking your mortgage early can all have major financial implications.
Why it’s a mistake:
A low rate with rigid terms might cost you more in the long run if you need flexibility down the road.
What to do instead:
Consider the full picture:
We help you compare offers not just by rate, but by overall value.
Going it alone might seem simpler, but it could cost you. Lenders don’t always advertise their best rates, and some are only accessible through brokers.
Why it’s a mistake:
You could miss out on exclusive deals, alternative lending solutions, and valuable advice tailored to your situation.
What to do instead:
Partner with a trusted mortgage broker like Circle Mortgage. We negotiate on your behalf, present multiple options, and help you make a fully informed decision—at no cost to you.
Your mortgage renewal is more than just a formality—it’s a financial reset button. Avoiding these common mistakes can help you lower your monthly payments, gain better terms, and move closer to financial freedom.
At Circle Mortgage, we believe you deserve a mortgage strategy—not just a mortgage. Our team is here to guide you through every step of the renewal process, answer your questions, and help you secure the best possible outcome.
