A large share of Canadian mortgages come up for renewal in 2025 and 2026 — and many were locked at the ultra-low rates of the pandemic era. If yours is one of them, renewal is the single biggest money decision you'll make this year. The good news: with preparation you can soften the increase and often beat your lender's first offer.
Start early — don't wait for the renewal letter
Your lender will mail a renewal offer weeks before maturity, and its first quote is rarely its best. Begin shopping 90–120 days out so you have time to compare and, if needed, switch lenders before your term ends.
Get three quotes, not one
- Your current lender's renewal offer — the number to beat.
- A mortgage broker shopping multiple lenders, including monolines you can't walk into.
- A credit union for a structurally different pricing model.
The cheapest of the three often beats the renewal letter by a meaningful margin over a five-year term. See fixed vs variable to decide which structure fits.
Budget for a higher payment
If you're rolling off a very low pandemic rate, your payment will likely rise even in a stable-rate environment. Run the new payment now with a mortgage calculator so it's not a shock, and look at whether extending your amortization or using prepayment room strategically makes sense.
Watch the details, not just the rate
Compare prepayment privileges, portability and the penalty structure — not only the headline rate. Switching lenders means re-qualifying under the stress test and a new approval, so confirm you qualify before giving notice. A few hours of shopping can save thousands over the term.
Questions about your renewal math? Ask Zara or talk to a Summitly agent — mortgage financing is arranged through our partner, Mortgage Squad Advisors.
