Renewals & Switches
Mortgage Renewal: Don't Auto-Sign the Letter
Your renewal is a free chance to reprice your biggest debt. We shop 50+ lenders so your bank has to compete for you.
Why renewals are where money is won or lost
Most Canadians negotiate hard on their first mortgage, then sign whatever their lender mails them five years later. Lenders know this — renewal letters are priced for the customers who don't shop. Switching at maturity carries no prepayment penalty, and since November 2024 a straight switch doesn't even require requalifying under the stress test. The leverage is entirely yours; you just have to use it before the maturity date.
Your 120-day renewal game plan
Talk to a broker and lock a rate hold. It costs nothing and sets a ceiling on what you'll pay even if rates rise before maturity.
Compare the market against your lender's early-renewal or blend-and-extend offers. Decide whether to adjust your amortization, payment frequency, or pull equity (that becomes a refinance).
Finalize. If switching, the new lender handles the transfer paperwork and often covers the fees. If staying, you sign knowing the offer actually beat the market.
What a quarter point is worth
On a $500,000 balance with 20 years remaining, 0.25% is about $65 a month — roughly $3,900 over a 5-year term. Renewals off pandemic-era rates often swing far more than a quarter point, which is exactly when payment-shock planning (re-amortizing, prepayment strategy before renewal) matters most. Estimate your new payment with our payment calculator and check today's rates.
Renewal FAQs
When should I start shopping for my mortgage renewal?
Start 120 days before your maturity date. Most lenders will hold a rate for up to 120 days, so you can lock today's rate as a floor while staying free to take something better — or your existing lender's best counter-offer — right up to renewal day.
Is there a penalty for switching lenders at renewal?
No. At maturity you can move your mortgage to any lender without a prepayment penalty. There are small discharge and transfer fees, but the new lender frequently covers them as part of the switch.
Do I have to pass the stress test again to switch lenders at renewal?
Usually not anymore. Since November 2024, straight switches — same mortgage amount and amortization — no longer require requalifying under the stress test, for insured and uninsured mortgages alike. That removed the biggest reason borrowers felt stuck accepting their bank's renewal offer.
Should I just sign the renewal letter my bank sent?
Renewal letters are rarely the lender's best rate — they count on convenience. Even a 0.25% difference on a $500,000 balance is roughly $3,900 over a 5-year term. Have a broker check the market first; if your lender's offer really is competitive, we'll tell you to take it.
Can I change my amortization or borrow more at renewal?
Yes — renewal is the natural moment to re-amortize (shorten to pay off faster, or lengthen to lower payments) or to refinance and pull equity for renovations or debt consolidation. Note that increasing the amount or amortization makes it a refinance, which does require requalification.
