- Federally regulated lenders must send your renewal statement at least 21 days before your term ends, listing the balance, rate, term, payment frequency and fees.
- If you do nothing, your mortgage may renew automatically at the rate your lender offers, which may not be the lowest available to you.
- Since November 21, 2024, OSFI no longer expects lenders to stress test an uninsured straight switch; insured mortgages can also switch without a new test.
- On a $400,000 balance with 20 years left, renewing at 4.25% instead of 2.50% adds $351.93 to the monthly payment.
Checked October 2026
How mortgage renewal works
Your mortgage has two clocks. The amortization is how long it takes to pay off the whole loan, often 25 or 30 years. The term is how long your current contract lasts, commonly a few years. At the end of each term you must renew, which means signing a new contract for the remaining balance.
Renewal is the one point where you can change lenders, rates and terms without breaking your contract. Mid-term, lenders charge a penalty to break it. At maturity, there’s no penalty to leave.
When to start: about 120 days early
The Financial Consumer Agency of Canada says to start shopping a few months before your term ends and not to wait for the renewal letter. Twenty-one days is little time to compare offers, get approved elsewhere and sign new documents.
Four months is a common window. TD lets you renew without a prepayment charge starting 120 days before maturity. CIBC holds a quoted rate for 120 days if you’re switching to it, and suggests you start thinking about it six to eight months ahead. Other lenders set their own windows, so ask yours.
- Four to six months outCheck your balance, remaining amortization and maturity date. Look at current rates on our mortgage rates page.
- About 120 days outGet written quotes from other lenders or a broker and lock in a rate hold where you can.
- When the renewal statement arrivesCompare its rate with your quotes and ask your lender to match or beat the lowest one.
- Before the term endsSign the renewal or complete the switch. Don’t let the date pass without a decision.
Negotiating with your current lender
The rate in your renewal letter is a starting point. FCAC notes that you may qualify for a discounted rate lower than the one quoted. Tell your lender about offers from other institutions or brokers, and be ready to show them in writing.
Ask about more than the rate. Your renewal statement sets out the term, rate and payment frequency, and each can change: a shorter or longer term, fixed or variable, monthly or more frequent payments.
Switching lenders and the stress test
You don’t have to renew with the same lender. A new lender must approve you and may use different criteria. For years, the main hurdle was the stress test: proving you could afford payments at a higher rate.
That changed for straight switches. Effective November 21, 2024, OSFI no longer prescribes its minimum qualifying rate for uninsured mortgages moved to another federally regulated lender at renewal, as long as the loan amount and remaining amortization don’t increase. For new uninsured mortgages, the rate is still the greater of your contract rate plus 2% or 5.25%.
Insured mortgages have the same freedom. Finance Canada says all insured mortgage holders can switch lenders at renewal without another stress test. Lenders still check your income, credit and debts under OSFI’s underwriting guideline, so a switch isn’t automatic.
If you want to borrow more or stretch the amortization, it’s a refinance, not a straight switch, and the stress test applies. The exemption also covers only stand-alone mortgages, so a readvanceable mortgage combined with a HELOC doesn’t qualify.
What switching costs
FCAC lists these possible costs:
- Discharge, registration, transfer or assignment fees
- An appraisal fee to confirm your home’s value, if needed
- Other administration fees
- Time with a lawyer or notary to sign registration documents
Many lenders cover these to win your business. CIBC, for example, says moving your mortgage to it without increasing the amount or refinancing means no legal or set-up fees. Ask any new lender to pay your costs, and compare the saving on the rate with what you’d spend.
Fixed or variable at renewal
A fixed rate stays the same for your whole term, and so do your payments. A variable rate can rise and fall. When it rises, more of each payment goes to interest, and FCAC warns that a variable mortgage with fixed payments may be riskier than you expect.
Renewal is a free chance to choose again. Weigh how much a payment increase would strain your budget, how long you plan to keep the home and what you might pay to break the mortgage early. Our mortgage penalty calculator estimates that cost.
Worked example: how a new rate changes your payment
Say you owe $400,000 with 20 years of amortization left and pay monthly. Your old rate was 2.50%.
| Rate at renewal | Monthly payment | Change from 2.50% |
|---|---|---|
| 2.50% | $2,117.09 | |
| 4.00% | $2,416.99 | +$299.90 |
| 4.25% | $2,469.02 | +$351.93 |
Our arithmetic, compounded semi-annually.
Renewing at the posted 4.25% adds $351.93 a month, or $4,223.16 a year. Negotiating 0.25 points off, to 4.00%, saves $52.03 a month, or $624.36 a year, compared with taking the first offer. That’s why a few weeks of comparing quotes is worth the time. Check your own numbers against current mortgage rates.
Frequently Asked Questions
When should I start my mortgage renewal?
About four months before your term ends. FCAC says to start shopping a few months early, and lenders such as TD let you renew from 120 days before maturity.
When will my lender send a renewal statement?
Federally regulated lenders must send it at least 21 days before your term ends. It lists your balance, rate, term, payment frequency and fees.
What happens if I don’t respond to my renewal letter?
Your mortgage may renew automatically at the rate offered. The renewal statement tells you if that will happen.
Can I switch lenders at renewal?
Yes. You don’t have to stay with your lender. The new lender must approve you, but there’s no penalty to leave at the end of your term.
Do I have to pass the stress test to switch lenders?
Not for a straight switch. Since November 21, 2024, OSFI doesn’t prescribe the stress test for uninsured mortgages moved without increasing the loan or amortization, and insured mortgages can switch without one too.
How much does it cost to switch mortgage lenders?
Possible costs include discharge, registration, transfer or assignment fees, an appraisal and administration fees. Many lenders pay some or all of them, so ask.
Can I negotiate my mortgage renewal rate?
Yes. FCAC says you may get a lower rate than the one in your renewal letter. Show your lender written offers from other lenders.
Should I choose fixed or variable at renewal?
A fixed rate keeps your payment the same for the term. A variable rate can go up or down. Choose based on how much payment risk your budget can absorb.
Can I renew my mortgage early?
Many lenders allow it within a window before maturity. TD, for example, lets you renew without a prepayment charge from 120 days before the term ends.
How much will my payment go up at renewal?
It depends on your balance, amortization left and new rate. On $400,000 over 20 years, going from 2.50% to 4.25% adds $351.93 a month.
Try this next
Sources, checked October 2026
- FCAC: Renewing your mortgage canada.ca
- TD: Mortgage renewal tips td.com
- CIBC: When to switch mortgage lenders cibc.com
- OSFI: Minimum qualifying rate for uninsured mortgages osfi-bsif.gc.ca
- OSFI: Exempting uninsured straight switches from the prescribed MQR (November 21, 2024) osfi-bsif.gc.ca
- Department of Finance Canada: mortgage reforms (September 2024) canada.ca
- FCAC: Choosing a mortgage that is right for you canada.ca
General information for Canadians, not financial, tax or legal advice. Rules and menus change, so confirm details with your bank, lender or the Government of Canada. See our methodology.