Renewal
When your term ends, you sign a new mortgage agreement for the remaining balance: same property, new rate and term, with your current lender or a new one. Federally regulated lenders must send a renewal statement at least 21 days before the term ends.
Many lenders send renewal offers months before maturity, and signing it back is the easiest option but not always the cheapest. The first offer is often not the lender's best rate, so compare it with the market.
You have leverage. You can negotiate, or switch lenders (a transfer or switch), where the new lender often covers standard legal and appraisal costs. A straight switch (same balance, no longer amortization) doesn't require re-qualifying at the stress-test rate: uninsured switches have been exempt since November 21, 2024, and insured ones are exempt too. The new lender still underwrites the file, so confirm approval before committing.
Starting early, often about 120 days out (a common lender window, not a federal rule), lets a rate hold protect you if rates rise. Our renewal-comparison calculator shows your lender's offer versus the open market side by side.
Sources
- Renewing your mortgage (Financial Consumer Agency of Canada)
- OSFI exempts uninsured mortgage straight switches from the prescribed MQR (effective Nov 21, 2024) (OSFI)
- “Straight switches” and portfolio insurance (Dec 2024) (Department of Finance Canada)
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