Nov 1, 2026
If your mortgage is coming up for renewal, don’t assume your bank’s first offer is its best. Shopping around and asking your lender to match a competing rate could save you thousands over your next mortgage term.
According to Kola Ifabumuyi, a certified mortgage planner with Mortgage Architects, a borrower with a $500,000 mortgage and 20 years remaining on the amortization could save approximately $4,629 in payments over five years by securing a five-year fixed rate of 4.50% instead of 4.79%, he told The Canadian Press.
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While that’s an illustrative calculation rather than a guaranteed saving, it shows why borrowers should be willing to negotiate for even a slight interest rate reduction.
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How to ask your bank to match a lower rate
First, get your renewal offer and shop around for a competing quote. Make sure the alternative has comparable terms so you can assess whether the difference is meaningful.
Then use this suggested script when contacting your lender:
“Hello, my mortgage is coming up for renewal, and I’ve received a competing offer at a lower interest rate. I’d prefer to stay with [current lender] if you can match or improve on that offer.
Could you review my renewal rate and provide your best available offer in writing? I’d also like to confirm that the mortgage terms and prepayment privileges are comparable.
I’m considering my options before my renewal date and would appreciate your response.”
Be transparent about the competing offer and ask your lender to match or beat it. Get the revised rate and terms in writing before making a decision.
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What if your bank refuses?
Ask whether the lender’s mortgage retention team can review the offer. If it still won’t match the rate, compare the cost of staying with the cost of switching.
The Financial Consumer Agency of Canada recommends shopping around a few months before renewal and negotiating with your current lender using competing offers. You may need to provide proof of the competing rate.
You don’t have to renew with the same lender, but a new lender must approve your application through its own process. Switching may involve legal, appraisal, discharge or registration fees, so ask which costs apply and whether the new lender will cover any of them.
Angela Calla, a mortgage broker and author of The Mortgage Code, recommends getting an independent review of your renewal offer.
“My recommendation is to obtain your lender’s renewal offer and take it to an experienced, independent mortgage professional for a comprehensive review,” she told Money.ca.
Compare the terms before you sign
A lower rate can reduce your borrowing costs, but make sure the competing offer is comparable and suits your plans. Before accepting an offer, check:
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- Prepayment privileges: How much extra can you pay towards the mortgage without penalty?
- Portability: Can you transfer the mortgage to another property if you move?
- Exit penalties: What could it cost to break the mortgage before the term ends?
- Switching costs: Will fees offset some of the savings from a lower rate?
Calla cautions borrowers against judging a mortgage on interest alone. “The most expensive mortgage isn’t always the one with the highest interest rate. Sometimes it’s the one that costs you the most to leave,” she said.
That’s worth keeping in mind when comparing offers, particularly if you might move or need to break your mortgage before the term ends. It doesn’t mean you shouldn’t negotiate for a lower rate; it means you should compare the full terms alongside the potential savings.
Start sooner rather than later
Give yourself time to gather competing offers, negotiate and switch lenders if necessary. Federally regulated lenders must provide a renewal statement at least 21 days before the end of your term, but that’s a minimum notice period, not a reason to wait.
A lower rate could save you thousands over your next term. If you can land a competing quote, ask your bank to match or beat it, and compare the full mortgage terms before signing.
Your lender may not agree to match the offer, but you’ll be in a stronger position to decide whether staying or switching makes more financial sense.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and U.S. brands.
