Mortgage Renewal in Canada: Complete Guide 2026
Your mortgage renewal is one of the best opportunities to save money — but most Canadians sign their lender's first offer without shopping around. Here's how to get the best rate when your mortgage comes up for renewal.
When Should You Start?
Your lender is required by law to send a renewal offer at least 21 days before your mortgage maturity date. But waiting for that offer is a mistake — by then you have little time to shop around.
Start researching rates. Compare lenders and understand current market conditions.
Get pre-approvals and rate holds from competing lenders. Contact a mortgage broker.
Negotiate with your current lender using competing offers. Make your final decision.
How Much Can You Save by Shopping Around?
A difference of even 0.25% in your mortgage rate can have a significant impact over a 5-year term:
| Mortgage Balance | 0.25% Rate Difference | 0.50% Rate Difference |
|---|---|---|
| $400,000 | ~$5,000 saved | ~$10,000 saved |
| $600,000 | ~$7,500 saved | ~$15,000 saved |
| $800,000 | ~$10,000 saved | ~$20,000 saved |
Estimates based on 25-year amortization, 5-year term. Actual savings vary.
Should You Switch Lenders at Renewal?
Switching lenders at renewal is penalty-free and often the best way to get a significantly lower rate. Here's what to consider:
Reasons to Switch
- Current lender offers an uncompetitive rate
- You want better prepayment privileges
- Better customer service elsewhere
- Access to cashback or incentives from new lender
Reasons to Stay
- Current lender matches the best market rate
- You value the existing relationship
- Switching requires legal/appraisal fees that offset savings
- You're refinancing — which requires requalifying anyway
Renewal Mistakes to Avoid
Ready to Compare Renewal Rates?
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Mortgage Renewal FAQs
When should I start shopping for mortgage renewal?
Start 120–180 days (4–6 months) before your renewal date. This gives you time to compare lenders, get a rate hold, and negotiate without being forced into a rushed decision by your current lender.
Do I have to renew with my current lender?
No. You have the right to move your mortgage to any lender at renewal with no penalty. This is the easiest and most impactful time to switch lenders and potentially save thousands.
What is a mortgage rate hold?
A rate hold locks in a mortgage rate for 90–120 days while you complete the renewal process. It protects you if rates rise — you get the lower of the held rate or market rate at closing.
Should I choose fixed or variable at renewal?
This depends on your risk tolerance, budget flexibility, and rate expectations. Fixed rates provide payment certainty; variable rates historically save money over the long term but can fluctuate. Compare both scenarios using our calculator.
Can I change my amortization at renewal?
Yes. You can increase or decrease your remaining amortization at renewal. Extending the amortization reduces monthly payments; shortening it increases payments but reduces total interest paid.
Official Regulatory Resources