Should You Just Sign Your Bank’s Renewal Offer?
Your bank’s renewal letter arrived. It looks official, maybe even tempting. They’re counting on you to just sign and return it without shopping around. Here’s why that’s usually a mistake.
Banks Bet on Inertia
Banks know that most homeowners will simply sign their renewal offer. It’s easier than shopping around, and most people assume their bank will give them a fair rate. But their initial offer is rarely their best rate — it’s their starting negotiation position.
What That Rate Difference Really Means
On a $400,000 mortgage, even a 0.25% rate difference saves you about $1,000 per year or $5,000 over a 5-year term. We often find differences of 0.50% or more compared to renewal offers — that’s $10,000+ in savings.
💡 Leverage
Banks will negotiate when they know you’re shopping. Even if you want to stay with your current lender, having competitive quotes in hand gives you leverage to negotiate better terms.
“My Bank Says They’ll Match Any Rate”
Banks will often negotiate when pushed, but they rarely match the best broker rates without evidence. Even if they match the rate, they may not match other terms like prepayment privileges or portability options. We can negotiate on your behalf for the complete package.
I was about to sign my bank’s renewal at 5.99%. Julie got me 5.29% with better terms. That’s saving me over $8,000 over my term. I’ll never just sign a renewal again.
Elevation Mortgage
Brokerage: Mortgage Connection · Licensed in Alberta and British Columbia
Julie & Andy Jeffery — independent mortgage brokers serving Calgary, Nelson BC,
and clients across Alberta and British Columbia.
© 2026 Elevation Mortgage · Independent Mortgage Brokers · Serving Alberta & BC