Compare renewal offers, switch lenders, and understand your mortgage renewal options.
A mortgage term is the period covered by your current mortgage contract. If you still owe money when the term ends, you normally need to renew the mortgage, switch to another lender, or pay the remaining balance in full. Renewal is a useful point to review your rate, term, payment frequency, prepayment privileges and other features instead of simply accepting the first offer you receive.
A straightforward renewal keeps the existing mortgage balance on its remaining amortization schedule. If you increase the mortgage amount, take equity out, consolidate other debt into the mortgage, or extend/reset the amortization, the transaction may be treated as a refinance or other material change and can require new qualification.
The Financial Consumer Agency of Canada recommends shopping around a few months before the end of your term. For a mortgage with a federally regulated financial institution, the lender must provide a renewal statement at least 21 days before the end of the existing term. It must also notify you at least 21 days before the term ends if it does not intend to renew.
The renewal statement includes the remaining balance, interest rate, payment frequency, term, and applicable charges or fees. The rate offered in that renewal statement cannot be increased before the renewal date.
Some mortgages can renew automatically if no action is taken. An automatic renewal may be convenient, but it does not mean the rate, term or features are the most suitable available for your situation.
| Option | What it means | What to review |
|---|---|---|
| Renew with current lender | Continue with the same lender under a new term. | Rate, term, payment frequency, prepayment privileges, portability and penalties. |
| Negotiate | Ask the current lender whether it can improve the offered rate or terms. | Bring comparable written offers where available and compare total terms. |
| Switch lenders | Transfer the remaining mortgage to a different lender at renewal. | Approval criteria, transfer/discharge costs, appraisal, collateral-charge issues and product restrictions. |
| Pay down the balance | Use available funds to reduce principal at maturity/renewal. | Liquidity needs and any contract-specific procedures. |
| Refinance | Increase borrowing or materially change the mortgage. | Qualification, stress test, equity, penalties if done before maturity and closing costs. |
Current federal rules make it easier for many borrowers to shop around at renewal. Insured mortgage holders can switch lenders at renewal without a new mortgage stress test when the applicable straight-switch requirements are met. OSFI also removed its prescribed minimum qualifying rate for qualifying uninsured straight switches between federally regulated institutions when the loan amount and remaining contractual amortization are not increased.
Federal mortgage-insurance rules also provide a straight-switch path for certain low-ratio mortgages moving to a new lender at renewal. Exact eligibility depends on the mortgage and lender. If you take additional equity, increase the balance beyond permitted transaction-cost treatment, or extend the remaining amortization, expect the lender to assess the transaction under the rules that apply to the changed mortgage.
FCAC lists possible setup, discharge, registration, transfer/assignment, appraisal and administration costs when changing lenders. A collateral-charge mortgage can also require additional legal or registration work. Ask the new lender which costs it will cover and which remain your responsibility.
How much can you increase regular payments or pay as a lump sum without penalty?
Understand how the lender calculates charges if you break the mortgage before the next maturity date.
Check whether the mortgage can move with you if you sell and buy another home.
Low-rate products can have restrictions on refinancing, early payout or transfers.
Include legal, appraisal, registration and any clawback terms in the comparison.
Enter your remaining mortgage balance and a potential renewal rate in our Canadian mortgage payment calculator.
Mortgage Payment CalculatorLast reviewed: September 30, 2026.