Compare the best mortgage renewal rates

Get the best mortgage renewal rates in Canada in just a few steps.

Current renewal mortgage rates in Canada

What is a mortgage renewal?

All mortgage products — whether fixed, variable or hybrid — come with a term expiration date. When the current term ends, a borrower can negotiate a new term with their existing lender or look out for a new lender to continue their mortgage for the remaining mortgage term. 

The rate can change at the time of mortgage renewal, depending upon the market situation, the available rates and the borrower’s financial situation. With a fixed-term mortgage, the interest rate remains the same until that end of term. On the other hand, with a variable-term mortgage, the interest rate changes with the market conditions. In both cases, at the time of the term's end, the mortgage will have to be renewed. 

If you decide to stay with your existing lender, there may be less  paperwork compared to going to a new lender. However, if the new lender offers you a better rate, that change could be worth it.

Renewing your mortgage in Canada

Generally, lenders start the mortgage renewal process with borrowers six months before the term ending. Borrowers can use this time to shop around, compare rates and terms with other lenders to see what is available in the market that suits their budget and needs. It’s also a good time to reconnect with your existing lender to discuss your options — perhaps it makes sense for you to switch to a variable from your existing fixed term, or vice versa. If the new mortgage term and rate suits your needs, you can just sign the renewal and restart the mortgage for another term. If you’re not happy with your existing lender’s terms, you can restart the mortgage process with a new lender. This may require signing registration documents with a lawyer or notary.

The cost of switching mortgage lenders

Before changing lenders, consider the potential costs, including:  

• New lender fees: May cover discharge, registration, transfer or assignment fees from your current lender
• Appraisal fee: Required to verify your property’s value, if applicable
• Administrative charges: Other processing fees may apply

Always ask your new lender if they’re willing to cover or waive off some or all of these costs.

Considering mortgage loan insurance premiums

You might incur a new mortgage insurance premium if:  

• The loan amount increases
• The amortization period is extended  

If you already have mortgage loan insurance, inform your new lender to avoid duplicate charges. Request a certificate number or a copy of the insurance certificate from your current lender.  

New rules for mortgage stress test at renewal

Starting November 21, 2024, borrowers who wish to switch lenders at renewal can now do so without having to undergo a stress test to prove they can afford their mortgage at a higher rate. Introduced in January 2018, the stress test required uninsured borrowers to qualify at the higher of the Bank of Canada’s five-year benchmark rate or their mortgage rate plus two percent. This policy aimed to ensure borrowers could handle potential future rate increases.  The removal of this stress test empowers borrowers to take advantage of more competitive rates from other lenders with fewer hoops to jump through. 

Top tips for easily renewing your mortgage

There is no magic formula to help you get the best mortgage renewal rate. Take some time to conduct due diligence well in advance of your renewal date to give you the best shot at the best rate. We recommend you: 

• Analyze your financial situation: Be ready to ask yourself how soon you want to pay off your mortgage? If you or your co-homeowner loses income, do you have a plan-b in place to keep paying the mortgage? How many times can you add a lump-sum payment towards your principal mortgage amount? While living in your primary residence, do you wish to do any renovations or repairs that would cost you big bucks? Answering these questions will give you clarity on your financial situation and how you would manage in case things don’t go as planned.
• Take a stock of your expenses: Renewal is a good time to review your debt and expenses. What’s your risk tolerance? Do you have big expenses coming up such as college fees or car payments? Has your income or financial situation changed since you bought the home? Reassess your debt situation to understand where you will be financially at the end of the mortgage term.
• Dig deeper into the market situation: As a borrower, you’ll have ample time to look into renewal options. Shop around and consider new mortgage products or financing options. Renegotiate mortgage terms with your existing lender if you wish to continue with the same lender. You can always take competing deals to the lenders and negotiate your new mortgage rate. Don’t hesitate to ask for new mortgage terms, for instance, if you’d like to change the payment frequency or term length. 

Frequently asked questions about mortgage renewals in Canada

Get answers to all your mortgage renewals in Canada questions here.

Shivani Kaul Writer

Shivani Kaul Writer

Shivani Kaul is a seasoned freelance writer and editor specializing in insurance, mortgage, and finance.

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