When your mortgage term ends, your lender will send you a renewal offer. It’s easy to sign and move on, but that first offer is rarely the best one available. Treat it as a starting point. Renewal is the one time you can switch lenders, change your mortgage and make extra payments without a penalty.
Your renewal timeline
| When | What to do |
|---|---|
| 4 to 6 months out | Find your maturity date and balance. Think about what you want next: rate type, term, payment. |
| About 120 days out | Start comparing offers. Many lenders let you lock in a rate this early. |
| 60 to 90 days out | Your lender’s renewal offer often arrives. Compare it to what else is available. |
| 21 days out | The latest a federally regulated lender must send your renewal statement. Too late to start shopping comfortably. |
| Maturity date | Your new term begins. |
Credit unions are provincially regulated and may follow different timelines, so check your mortgage documents.
Watch out for automatic renewal
If you don’t respond to your renewal offer, your lender may renew you automatically. Your renewal statement will say whether this applies. An automatic renewal can put you into a shorter term at a higher rate than you’d get by asking, and you give up your chance to negotiate.
Your options at renewal
- Renew with your current lender. The simplest option. Don’t accept the first rate offered; it’s often negotiable.
- Switch to a new lender. No prepayment penalty at maturity, and usually no stress test (see below).
- Change your mortgage. Pick a new term, switch between fixed and variable, change your payment frequency, or shorten your amortization.
- Make a lump-sum payment. Renewal is a penalty-free chance to pay down your balance.
- Borrow more or extend your amortization. That’s a refinance, which has different rules. See my refinance guide.
Switching lenders is easier than it used to be
No stress test for most switches. Since November 2024, you generally don’t need to re-qualify under the federal stress test when you switch lenders at renewal, as long as you keep the same mortgage amount and amortization. This applies to both insured and uninsured mortgages. The new lender will still review your income, credit and property.
Keep your insured rate. If your mortgage was insured when you bought (less than 20% down), it may still qualify for lower insured pricing with a new lender, as long as you haven’t refinanced. Make sure the new lender knows it’s insured.
What switching costs:
| Cost | Typical amount | Who usually pays |
|---|---|---|
| Discharge fee (old lender) | $200 to $400 | You, though some new lenders cover it |
| Legal and appraisal fees | $0 to $1,000 | Usually the new lender |
| Collateral charge re-registration | $1,000 to $2,000 | Only if your mortgage is registered as a collateral charge |
Not sure how your mortgage is registered? I can find out for you before you decide.
Compare more than the rate
| Feature | Why it matters |
|---|---|
| Prepayment privileges | How much extra you can pay each year without a penalty |
| Penalty calculation | How the lender calculates the IRD if you break early |
| Portability | Whether you can take the mortgage with you if you move |
| Charge type | Standard or collateral, which affects future switching costs |
| Rate hold length | How long the offer is protected |
Not sure which rate type fits? Read my fixed or variable guide.
How I help
I compare your current lender’s offer against what other lenders are offering, check the fine print, and handle the paperwork if switching makes sense. Because a new lender reviews your file, it helps to start early.
Frequently asked questions
When should I start my mortgage renewal?
Start comparing options about four months, or 120 days, before your term ends. Many lenders will hold a renewal rate for up to 120 days.
Do I have to pass the stress test to switch lenders at renewal?
Generally no. Since November 2024, borrowers switching lenders at renewal usually don’t need to pass the stress test if they keep the same mortgage amount and amortization.
Does it cost money to switch mortgage lenders at renewal?
Switching at renewal has no prepayment penalty. You may pay a discharge fee of about $200 to $400, and many new lenders cover legal and appraisal costs.
What happens if I don’t respond to my renewal letter?
Your lender may renew your mortgage automatically, often into a term or rate that isn’t the best available. Your renewal statement will tell you if automatic renewal applies.
Can I renew my mortgage early?
Many lenders allow you to renew without penalty up to 90 to 180 days before your term ends. Renewing earlier than that may involve a penalty.
Next step
Every situation is a little different. If you’d like to talk through yours, book a consultation or read more about my renewal and switch service.
This guide is general information, not financial or legal advice. Rules, programs and rates change, so please confirm current details with me or the official sources linked above.