Mortgage renewal is one of the most important financial decisions you will face as a homeowner — and one of the most commonly neglected. About 60% of Canadians simply sign their lender’s renewal offer without shopping around, leaving thousands of dollars on the table.
This hub covers everything you need to know about renewing your mortgage in Canada.
Essential renewal guides
📋 Renewal Guide
Complete Mortgage Renewal Guide — Step-by-step process from 120 days before maturity through signing your new term.
💡 Renewal Tips
Mortgage Renewal Tips for Success — Proven strategies to negotiate a better rate and avoid common mistakes.
⏰ Best Time to Renew
Best Time to Renew Your Mortgage — When to start shopping, early renewal options, and timing your rate lock.
📊 Renewal Calculator
Mortgage Renewal Calculator — Estimate your new payment at current rates and see how different terms compare.
✅ Renewal Checklist
Mortgage Renewal Checklist — Timeline-based checklist from 120 days before maturity to signing day.
Renewal vs refinance
Understanding the difference between renewal and refinancing is critical. They serve different purposes:
| Feature | Renewal | Refinance |
|---|---|---|
| What changes | Rate and term | Rate, term, balance, and potentially lender |
| Penalty | None (at maturity) | Yes (IRD or 3 months’ interest) |
| Access home equity | No | Yes |
| Appraisal required | Usually no | Usually yes |
| Legal fees | Covered by new lender (if switching) | $500–$1,500 |
| Best for | Simply continuing your mortgage | Accessing equity, debt consolidation, changing lender |
→ Mortgage Renewal vs Refinance: Complete Comparison
When refinancing makes more sense
- You want to access home equity for renovations, investing, or debt consolidation
- You need to change from a conventional to a collateral charge mortgage (or vice versa)
- You want to increase your amortization to lower payments
- You are mid-term and rates have dropped enough to justify the penalty
→ When Should I Refinance My Mortgage? → Refinancing Hub — Complete refinancing guide
Payment shock at renewal
Many Canadian homeowners who locked in at historically low rates (2.0%–3.0%) during 2020–2022 are facing significant payment increases at renewal. This is known as payment shock.
How much could your payment increase?
| Original Rate | New Rate | Payment on $400K Mortgage (25y) | Monthly Increase |
|---|---|---|---|
| 2.0% | 4.5% | $1,694 → $2,200 | +$506 |
| 2.5% | 4.5% | $1,793 → $2,200 | +$407 |
| 3.0% | 5.0% | $1,893 → $2,338 | +$445 |
| 1.5% | 4.5% | $1,597 → $2,200 | +$603 |
→ Payment Shock at Mortgage Renewal — How to prepare and what options you have → Mortgage Payment Shock Calculator — Calculate your exact increase
Strategies to manage payment shock
- Extend your amortization — If eligible, extending from 20 to 25 years can lower monthly payments by $200–$400
- Make a lump sum payment before renewal — Reducing your principal lowers your new payment
- Shop aggressively for the best rate — Even 0.25% lower saves $50–$75/month on a $400K mortgage
- Consider a shorter term — 2- or 3-year fixed rates are sometimes lower than 5-year rates
- Switch to variable — If the Bank of Canada is cutting rates, variable may offer a lower starting rate
Switching lenders at renewal
Switching lenders is free at renewal (no penalty) and can save you significant money. Here is what to know:
Benefits of switching
- Access to better rates — new lenders compete for transfer business
- New lender pays legal and appraisal costs (typically)
- Fresh start with better mortgage features (prepayment privileges, portability)
When switching may not work
- You have a collateral charge mortgage (TD, Tangerine, some credit unions) — transferring requires a full discharge and new registration, which costs $500–$1,000
- You owe more than 80% of your home’s value — the new lender may require CMHC insurance
- You do not qualify under the new lender’s stress test — income changes since your original mortgage
The stress test at renewal
If you renew with your current lender, you do not need to re-qualify under the stress test. If you switch to a new lender, you must pass the stress test at the qualifying rate. This can prevent some borrowers from switching even when better rates are available.
→ Mortgage Stress Test Calculator — Check if you qualify to switch
Renewal timeline
| When | Action |
|---|---|
| 6 months before | Start monitoring mortgage rates; review your financial situation |
| 120 days (4 months) | Research rates; contact a mortgage broker for competing offers |
| 90 days | Get rate holds from 2–3 lenders; negotiate with your current lender |
| 60 days | Compare all offers; make your decision |
| 30 days | Sign renewal or initiate transfer to new lender |
| Maturity date | New term begins; confirm new payment amount |
→ Annual Mortgage Planning Calendar — Month-by-month homeowner tasks including renewal preparation
Rate decisions at renewal
Renewal is a fresh opportunity to choose your rate type and term. Consider:
- Fixed vs Variable Mortgage — Which is right for your new term?
- Mortgage Rate Forecast 2026 — Where rates are heading
- Current Mortgage Rates — Compare today’s rates by province and city
- How to Negotiate Your Mortgage Rate — Tactics that work at renewal
Related resources
- Mortgage Calculator — Compare payments at different rates
- Mortgage Affordability Calculator — Confirm you can still afford your home
- Mortgage Penalty Calculator — Calculate early renewal penalty (if applicable)
- Should I Break My Mortgage for a Lower Rate? — When early renewal makes sense
- Mortgage Comparison Worksheet — Side-by-side comparison of renewal offers