Mortgages
How to Renew Your Mortgage in Canada
When your lender has to contact you, why you shouldn’t just sign the renewal letter, and what switching lenders involves.
When will my lender contact me?
If your lender is federally regulated, such as a bank, it must send a renewal statement at least 21 days before your term ends, or tell you at least 21 days ahead if it won’t renew.
If you don’t respond, your mortgage may renew automatically, and you may not get the best rate. The renewal statement says whether it will renew automatically.
Put it into practiceMortgage payment calculatorShould I accept my lender’s renewal offer?
Not without comparing. Ask your lender for a better rate and get quotes from other lenders or a broker a few months before your term ends.
FCAC suggests starting a few months ahead rather than waiting for the renewal letter, so you have time to compare and, if you switch, to be approved.
What does switching lenders involve?
The new lender must approve you and may charge, or cover, fees such as discharge, transfer or appraisal fees.
You don’t have to pass the stress test again if you switch at renewal without increasing the amount or amortization. If you increase either, you may need to qualify again and, for insured mortgages, pay new insurance premiums. A collateral-charge mortgage can cost more to move.
What else can I change at renewal?
Renewing means choosing a new term, so you can pick a different length, switch between fixed and variable, or change your payment frequency.
Refinancing to borrow more or extend your amortization is different from renewing: it’s a new mortgage and needs a new approval.
Keep reading
MortgagesMortgage Prepayment Penalties in CanadaWhen you pay a penalty for breaking your mortgage, how lenders calculate it, and how to keep it low.
MortgagesHow a Home Equity Line of Credit (HELOC) Works in CanadaA HELOC lets you borrow against your home up to 65% of its value, at a variable rate usually lower than other credit. How much you can borrow, the costs, and the risks of using your home as security.
MortgagesFixed vs Variable Mortgages in CanadaHow fixed and variable rates work, how variable payments react when prime changes, and how to decide which suits you.- MortgagesThe Mortgage Stress Test in CanadaWhat the stress test is, how the qualifying rate is set, how it affects how much you can borrow, and when it doesn’t apply.
Official sources and further reading
- FCAC: Renewing your mortgage ↗
- OSFI: Minimum qualifying rate for uninsured mortgages ↗
- Finance Canada: mortgage reforms in force December 15, 2024 ↗
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value