Mortgage renewal guide (Canada, 2026)
When your term ends, don’t auto-sign the bank’s renewal letter — it’s rarely their best rate. Renewal is your penalty-free chance to shop 100+ lenders. Here’s the step-by-step: when it happens, your options, and how to negotiate or switch.
Don't auto-sign the letter — we benchmark it against 100+ lenders first.
Benchmark my renewalYour renewal timeline
Your maturity date is set. Lock a renewal rate now to hold today's pricing while you compare — a rising market can't catch you.
Your lender mails its renewal offer. Treat it as a starting point. Benchmark it against the market before you respond.
Decide: negotiate a match, switch lenders (penalty-free), or refinance to restructure. We handle the transfer paperwork.
New term starts — ideally at a lower rate with terms that fit. If you did nothing, you'd be auto-renewed at the posted offer.
Roughly 60% of Canadians simply sign their renewal without shopping — which is exactly what lenders count on. Starting at 120 days flips the leverage to you: you hold today’s rate, compare the whole market, and switch penalty-free if your lender won’t compete.
Stay, switch, or restructure?
At renewal you have three moves: stay if your lender matches the market, switch penalty-free to a lender who wants your business, or refinance to consolidate debt, pull equity, or change your amortization. Compare your options below — or send us your renewal letter and we’ll benchmark it for you.
How to actually negotiate your mortgage renewal
Your lender mails a renewal offer 3–4 months before your term ends, and it’s written to be accepted, not negotiated. The single most valuable thing you can do is treat that letter as a first offer. Lenders keep a “posted” renewal rate and a lower rate they’ll give to keep a customer who is clearly shopping — the only way to reach the second one is to show them you’re looking. Start about 120 days out, when most lenders will hold a rate for you, and you control the timing instead of scrambling in the final week.
Leverage comes from a competing quote. When we benchmark your file against 100+ lenders and bring back a real number, your current lender either matches it or loses the mortgage — and a switch at renewal is penalty-free because your term is already ending. A switch to a new lender is usually a straightforward transfer, often with the new lender covering the legal and appraisal costs, so the friction that keeps people from moving is smaller than it feels.
Look past the headline rate at the terms, because that’s where a cheap-looking offer can cost you later: how the prepayment penalty is calculated, how much you can prepay each year, whether the mortgage is portable if you move, and whether it’s a collateral charge that makes switching harder next time. A rate that’s a few basis points higher with fair, flexible terms often beats a teaser rate that traps you.
Renewal is also the cleanest moment to restructure — consolidate high-interest debt, pull equity for a renovation, or shorten your amortization — all without a break penalty, since the term is ending anyway. If your life changed since you last signed, this is the window to act. Send us the letter and we’ll tell you plainly whether it’s competitive and what your best move is.
6 things to know before you renew
How to turn renewal from an autopilot signature into thousands in savings.
Don't auto-sign the renewal letter
The renewal offer your lender mails is rarely their best rate — it's the rate they hope you'll accept without shopping. Signing it is the single most expensive mortgage mistake in Canada. Treat it as a starting point, not a decision.
Renewal is your free chance to switch
At renewal your mortgage is up — you can move to a new lender with no prepayment penalty. A switch is usually a simple transfer (often lender-paid), so the only reason to stay is if your current lender genuinely wins on rate and terms.
Start 120 days out
Most lenders let you lock a renewal rate 120 days before maturity, holding today's rate while you shop. Start early and a rising market can't catch you; a falling market, and many lenders honour the drop.
The rate is only half the deal
Prepayment privileges, penalty calculation, portability, and whether it's a collateral charge all matter. A slightly higher rate with fair terms can beat a teaser rate that traps you. We compare the whole contract, not just the number.
Renewal is the moment to restructure
It's the cleanest time to consolidate high-interest debt, tap equity for a renovation, or change your amortization — all with no break penalty. If your goals changed since you signed, renewal is when to act.
We benchmark the letter against 100+ lenders
Send us your renewal offer and we'll tell you in plain terms whether it's competitive — and if it isn't, place you with a lender who wants your business. Beating the first offer by 30–60 bps is common.
Why renew through us
- Your renewal letter benchmarked against 100+ lenders — in plain language, in a day.
- Rate held up to 120 days before maturity, so a rising market can't cost you.
- Switching handled for you — transfer, re-papering, and paperwork, often at no cost.
- FSRA #13737 · we work for you, not the bank keeping your renewal quiet.