If you’re a homeowner in Canada with a mortgage up for renewal, brace yourself—the game has completely changed. What used to be a simple, almost passive process has now transformed into a high-stakes battle among banks, each fighting tooth and nail to keep borrowers from switching lenders.
For decades, major banks had a laid-back approach to mortgage renewals. They’d send you a renewal offer, and most homeowners would simply sign on the dotted line without much thought. But now, with rising interest rates, increased competition from mortgage brokers, and aggressive offers from smaller lenders, the mortgage renewal battlefield has become more competitive than ever.
And RBC has just fired the first shot.
RBC’s Game-Changing Move: The Mortgage Renewal App
Leading the charge in this mortgage renewal war is RBC, Canada’s biggest mortgage lender. Instead of sticking with traditional renewal tactics, RBC has rolled out a cutting-edge Mortgage Renewal App—a first-of-its-kind digital solution aimed at keeping their mortgage clients locked in.
What Makes RBC’s Renewal App Different?
✔ Instant Access to Renewal Offers – Borrowers can view customized renewal rates for various terms in real-time, without waiting for a bank representative.
✔ Transparent Payment Calculations – The app provides detailed breakdowns of how different rates will impact monthly payments, helping homeowners make informed decisions.
✔ Direct Line to Renewal Specialists – If users need human assistance, the app seamlessly connects them with RBC mortgage retention specialists.
✔ Aggressive Rate Proposals – RBC is proactively offering competitive renewal rates to keep their customers from being lured away by other lenders.
This move isn’t just about convenience—it’s a strategic power play by RBC. With Canada’s largest mortgage portfolio, RBC understands that losing even a small percentage of renewals to competitors could cost them billions in lending volume.
Rather than waiting for borrowers to shop around for better rates, RBC is taking the fight directly to their customers’ smartphones.
Why Banks Are No Longer Passive About Mortgage Renewals
The Old Way: “Here’s Your Offer—Sign Below”
A decade ago, mortgage renewals were a straightforward, low-effort process for banks. Lenders would send out renewal notices with an above-average interest rate, expecting most borrowers to sign without negotiating.
At the time, this worked because:
✅ Borrowers trusted their banks and rarely questioned the renewal terms.
✅ Rate increases were minimal, so homeowners didn’t feel the need to shop around.
✅ Competition was less aggressive, with fewer mortgage brokers and alternative lenders actively pursuing renewal business.
But times have changed.
The New Reality: Aggressive Retention Strategies
Today, banks are fighting harder than ever to retain their mortgage clients. The reason? Mortgage brokers, credit unions, and smaller lenders like HSBC have stepped up their game, aggressively targeting renewal customers with lower rates and better terms.
Banks have been forced to adapt, and that means:
✔ No more passive renewals – Borrowers are being bombarded with counteroffers the moment they mention shopping around.
✔ Competitive price-matching – Unlike the past, where banks were slow to adjust rates, lenders now match competing offers almost instantly.
✔ Tech-driven retention strategies – With tools like RBC’s Renewal App, banks are using AI and real-time data to preemptively lock in customers before they start exploring other options.
The lesson for homeowners? Simply signing your bank’s first renewal offer is a costly mistake.
What Mortgage Borrowers Need to Do in This New Renewal War
If you have a mortgage renewal coming up, don’t fall into the trap of automatically accepting your lender’s first offer. In today’s market, there’s real money on the table if you’re willing to put in a little effort.
1. Negotiate Relentlessly
Your bank will never offer you their best rate upfront. Instead, they test the waters with an average renewal offer, hoping you won’t challenge it.
💡 Pro Tip: Get quotes from at least three other lenders before speaking with your bank. Use those quotes as leverage to negotiate a better deal.
2. Consider Switching Lenders
The biggest misconception among borrowers is that renewing with your current bank is always easier. While it’s true that staying put may involve less paperwork, switching lenders could save you tens of thousands of dollars over the life of your mortgage.
❗ Important: Many lenders offer cash incentives to switch, covering legal and appraisal fees to make the transition seamless.
3. Work With a Mortgage Broker
Banks want you to believe they have the best rates, but mortgage brokers often have access to special discounts and exclusive offers that aren’t publicly advertised.
✔ Mortgage brokers shop the market for you, finding the best possible deal based on your financial profile.
✔ They understand lender policies, helping you navigate prepayment penalties and mortgage portability options.
✔ In many cases, brokers can get better rates than banks, especially if you have strong credit and a solid income.
4. Don’t Fall for “Lower Rate” Tricks
Some banks intentionally offer misleadingly low rates to keep you from switching—only to adjust the terms in a way that costs you more in the long run.
For example:
⚠ Extending your mortgage term might lower your monthly payments but increase the total interest paid.
⚠ Variable-rate “discounts” may not be worth it if rate hikes continue.
⚠ Hidden fees and penalties can make a lower rate less attractive than it appears.
Always read the fine print before locking in a renewal offer.
The Mortgage Renewal War Has Just Begun
With mortgage rates fluctuating and lenders desperate to hold onto customers, Canada is seeing a renewal war unlike anything in history.
✔ Banks are aggressively fighting to retain mortgage clients
✔ Borrowers who negotiate can save thousands in interest costs
✔ Technology, like RBC’s Mortgage Renewal App, is reshaping the renewal process
If you’re a homeowner facing renewal, this is your moment to take control. Shop around, compare offers, negotiate hard, and don’t be afraid to switch lenders if it means securing a better deal.
Because in this new era of mortgage renewals, the borrower who fights back wins.
Final Thoughts: Will You Win the Renewal Battle?
The days of blindly signing mortgage renewal offers are over. The smartest homeowners are the ones who treat their renewal like a new mortgage application, weighing all their options and securing the most competitive rate possible.
🔹 Are you prepared for your renewal battle?
🔹 Have you checked competing offers before signing?
🔹 Would you consider switching lenders for a better deal?
Drop your thoughts in the comments! Let’s help Canadian homeowners navigate this mortgage renewal war together.
