Don't just sign your renewal letter
Most Canadians leave thousands on the table by simply signing their lender's renewal offer. Let 8Twelve negotiate a better deal - it's free and there's no penalty to switch.
Get a better renewal rate →What is a mortgage renewal in Canada?
A mortgage renewal is the point at which your current term ends and you sign a new term for the balance you still owe. Your amortization keeps running — only the rate, term length and conditions reset. Canadian mortgages are usually renewed every one to five years until the balance is paid off.
You are free to renew with your existing lender or move to another one at maturity, and moving costs you no penalty. Because renewal offers are commonly a quarter to a half percent above the best available market rate, comparing before you sign is where the money is.
- Your lender must send a renewal statement at least 21 days before your term matures.
- Switching lenders at maturity carries no prepayment penalty — you are not breaking the contract.
- Most lenders hold a renewal rate for 90 to 120 days, so you can lock early and keep shopping.
- A 0.25% lower rate on a $500,000 mortgage saves roughly $6,000 over a five-year term.
73%
Just sign their renewal
0.25–0.5%
Typical rate premium
$6K–$12K
Overpaid per 5yr term
$0
Cost to switch at renewal
Did you know? The average renewal offer from your current lender is 0.25% to 0.50% higher than what's available in the market. On a $500,000 mortgage, that's $6,000–$12,000 over a 5-year term.
Why switch at renewal?
- • No penalties to switch lenders at renewal date
- • Access to rates from 65+ lenders (not just your current bank)
- • Opportunity to change your term length, payment frequency, or amortization
- • Potential to consolidate other debts at the same time
- • Our service is free - the lender pays our fee
120 days before renewal
Start shopping rates 4 months early. This gives you leverage and time to compare.
Compare, don't just sign
Your current lender's renewal offer is almost never the best available. We check 65+ lenders.
Switch painlessly
Switching lenders at renewal is free in most cases - no penalties, no appraisals needed.
What to consider at renewal time
Renewal is also the perfect time to reassess your mortgage strategy. You can switch between fixed and variable rates, adjust your amortization, or take advantage of your increased equity. If you're considering refinancing or an equity takeout, renewal is the most cost-effective time to do it - no penalties apply.
Lower your rate
Even 0.25% lower on $400K saves $5,000+ over a 5-year term. Check today's rates.
Improve your terms
Switch from variable to fixed for payment certainty, or prepayment privileges for flexibility.
Access your equity
Your home has likely appreciated. Use renewal to set up a HELOC or access equity.
Use our mortgage calculators to see how much you could save, or apply now for a free renewal quote.
Free renewal quote
Compare your renewal options
No obligation · Takes about 3 minutes
How to renew your mortgage in Canada, step by step
- 1
Check your maturity date
Find the maturity date on your mortgage statement and count back 120 days — that is when to start.
- 2
Get your numbers
Note your outstanding balance, remaining amortization and current payment.
- 3
Compare the market
Compare your lender's renewal offer against rates from other lenders on the same term.
- 4
Decide stay or switch
Ask your lender to match the best offer; if they will not, arrange a switch, which carries no penalty at maturity.
- 5
Sign before maturity
Complete the paperwork before your term ends so you never fall onto a posted open rate.
A worked example: what 0.35% actually costs you
Say you have $450,000 left on your mortgage with 20 years of amortization remaining, and your lender's renewal letter offers 4.59% on a five-year fixed while 4.24% is available elsewhere on the same term.
- At 4.59%, the monthly payment is roughly $2,845.
- At 4.24%, it is roughly $2,760 — about $85 a month lower.
- Over the five-year term that is close to $5,100 less paid out, and a few thousand dollars more of the balance retired.
Run your own numbers with the mortgage renewal calculator or check today's rates. Figures are illustrative; your actual payment depends on your balance, amortization, and the rate you qualify for.
Mortgage renewal questions, answered
The questions Canadians ask most often in the four months before their mortgage matures.
What is a mortgage renewal in Canada?
A mortgage renewal is the point at which your current mortgage term ends and you sign a new term for the balance you still owe. Your amortization continues; only the rate, term length and conditions are re-set. Canadian mortgages are typically renewed every one to five years until the mortgage is paid off, and your lender must send you a renewal statement at least 21 days before the term ends.
When should I start shopping for my mortgage renewal?
Start about 120 days before your maturity date. Most lenders will hold a rate for you for 90 to 120 days, so shopping early lets you lock a rate while you compare, and gives you enough time to complete a switch to another lender before your current term ends.
Can I switch lenders at renewal without a penalty?
Yes. When your term matures you can move your mortgage to another lender without a prepayment penalty, because you are not breaking the contract early. You will still need to re-qualify with the new lender, and there may be small discharge, assignment or legal fees, which many lenders cover on a straight switch.
Do I have to re-qualify or pass the stress test to renew?
If you stay with your current lender and simply renew the balance, you generally do not have to re-qualify. If you switch lenders, the new lender will underwrite the file and, for insured or federally regulated lenders, apply the stress-test qualifying rate. A broker can tell you in advance whether a switch will qualify.
How much can I save by not signing my renewal letter?
Renewal offers sent by a lender are commonly 0.25% to 0.50% above the best rate available in the market. On a $500,000 mortgage that difference is roughly $6,000 to $12,000 in extra interest over a five-year term, which is why comparing before you sign is usually worth the effort.
What happens if I do nothing before my mortgage matures?
If you neither sign nor switch, most lenders automatically convert the mortgage to a short open or posted-rate term, which is normally far more expensive than a negotiated rate. You can still change afterwards, but you will pay the higher rate in the meantime.
Can I change my mortgage amount or amortization at renewal?
You can shorten your amortization, change your payment frequency, or switch between fixed and variable at no cost. Increasing the mortgage amount — to consolidate debt or take out equity — is a refinance rather than a straight renewal, so it requires a full application and an appraisal, though renewal is the cheapest time to do it because no penalty applies.
Does using a mortgage broker at renewal cost anything?
For standard residential mortgages in Canada the lender pays the broker's commission, so the service is free to you. Fees only arise in specialised private or commercial lending, and they must be disclosed to you in writing before you commit.
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Learn moreBest available rate from 8Twelve's lender panel, subject to qualification and lender approval. OAC.