Editor's note, October 6, 2026: this article was reviewed and rewritten in our accuracy check. An earlier version contained savings ranges and claims about lenders' renewal offers we could not support; they have been removed or replaced with figures from the sources listed at the end of the article.
Many Canadians are renewing mortgages taken out when rates were much lower: a Bank of Canada staff analysis published in July 2025 estimated that about 60% of all outstanding mortgages would renew in 2025 or 2026, and that most of those borrowers would see higher payments. Renewal is also your best chance to shop: you can switch lenders without a penalty at the end of your term.
What a better rate is worth
Illustration: a $500,000 balance with 20 years of amortization left. Over a five-year term, a rate of 4% instead of 4.25% saves about $5,800 of interest (rates are illustrative; Canadian semi-annual compounding). That's why it pays to compare.
Your renewal statement
If your lender is federally regulated (a bank, for example), it must send you a renewal statement at least 21 days before your term ends, setting out the rate and terms it is offering. You don't have to accept it, and you can negotiate.
Start early
- Begin shopping several months before your maturity date. Many lenders will hold a rate for a set period; ask how long.
- Get written offers from your current lender, at least one other lender or a mortgage broker, and, if you like, a credit union.
- Compare the whole offer: rate, term, prepayment privileges, portability and how penalties are calculated.
Switching lenders
- No stress test for a straight switch. Since November 21, 2024, OSFI has exempted uninsured straight switches (same balance and amortization) from the minimum qualifying rate. Insured mortgages have been able to switch without re-qualifying since early 2024. If you borrow more or extend the amortization, you qualify again.
- Costs: ask what the new lender covers (legal, appraisal, discharge) and what your current lender charges to discharge the mortgage.
- Timing: switch at maturity. Leaving before the term ends triggers a prepayment penalty.
Negotiating with your current lender
Show your current lender the competing written offer. Lenders often match or improve renewal offers to keep a good customer, but only if you ask.
Choosing a term
Think about how long you're likely to keep the mortgage, whether you may sell or refinance, and how much payment certainty you need. See our fixed vs variable guide.
If the new payment is a stretch
Talk to your lender before maturity. Options can include a different term, extending the amortization (if you qualify), or using prepayment room you've built up. Run the new payment with our mortgage calculator so it isn't a surprise.
Frequently asked questions
Can my lender refuse to renew my mortgage?
A lender isn't obliged to renew. If yours is federally regulated, it must tell you its renewal offer, or that it won't renew, at least 21 days before the term ends. Starting early gives you time to find another lender if needed.
Does switching lenders hurt my credit?
Applying means a credit check, which a lender records on your credit report. Shopping within a short period and only applying where you're serious keeps the impact small.
What if I have a variable rate with fixed payments?
Check whether you reached your trigger rate during the term; if you did, your balance may be higher than planned and your new payment will need to reflect that. See our fixed vs variable guide.
Questions about your renewal? Ask Zara, Summitly's AI virtual agent, or talk to a licensed Summitly agent. Mortgage financing is arranged through our partner, Mortgage Squad Advisors.
