Why renewal matters
A small difference in rate or terms at renewal can mean thousands of dollars over time. Understanding your options helps you renew with confidence instead of rushing.
What does “mortgage renewal” mean?
In Canada, most mortgages have two timelines:
- Amortization — the total time to fully pay off the mortgage
- Term — how long your rate and conditions are locked in
Renewal happens when your term ends but you still owe money.
When will my lender contact me?
Most lenders send renewal offers 30–90 days before your term ends. These usually include a proposed rate, term, and new payment.
If you do nothing, you may be automatically renewed into a default option that isn’t competitive.
What choices do I have at renewal?
- Accept the offer — simple, but not always best
- Renegotiate — ask for better rates or flexibility
- Switch lenders — often possible without penalties
Can I change my mortgage at renewal?
Yes. Renewal is a natural checkpoint to:
- Switch between fixed and variable rates
- Adjust payment frequency
- Increase payments to pay off faster
- Shorten or extend amortization
- Make lump-sum payments
What if interest rates have changed?
Your renewal rate reflects current market conditions.
- Higher rates may raise payments or stretch amortization
- Lower rates may reduce payments or accelerate payoff
Common renewal mistakes
- Accepting the first offer without comparison
- Ignoring term length and future plans
- Overlooking prepayment flexibility
How to prepare for renewal
- Review your balance and current rate
- Check market rates
- Think about the next 3–5 years
- Run payment scenarios
If you want a refresher on how terms, amortization, and payments work, start with our Mortgage Basics guide.
The Mortgage Renewal Optimizer can help you compare options clearly.
Want to see how renewal choices affect your payments?
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