Homes & mortgages
Mortgage renewal: what to compare before the term ends
Separate a new term, switching lenders and refinancing, including approval and costs.
The key idea
Renewal sets the next contract for a balance you still owe. Switching lenders requires the new lender’s approval. Borrowing more or changing the loan through refinancing is a different decision.
Start with the offer and the calendar
For a mortgage with a federally regulated financial institution, a renewal statement is due at least 21 days before term-end; notice of non-renewal is also required at least 21 days before. This is a minimum notice rule, not a recommended waiting period or a rule for every provincial lender. The statement includes the balance, offered rate, frequency, term and applicable charges. FCAC: renewing your mortgage
Compare the same starting balance
Ask each lender for the payment, rate type, remaining amortization, term, prepayment permissions and conditions. A lower payment may come from stretching repayment rather than a cheaper loan. Compare interest and fees over a common period before treating a smaller monthly bill as savings. FCAC: mortgage terms and amortization
Refinancing may change the amount borrowed or other loan conditions. Do not assume it will be approved because your current mortgage is approaching renewal.
Switching has work and possible costs
Ask about appraisal, discharge, assignment/registration and legal or administrative costs. A lender may cover some; obtain the actual terms. A collateral charge can involve other secured debts. Qualification requirements depend on the transaction and lender: this guide does not promise a stress-test exemption or a free switch. FCAC: renewing your mortgage
If the new payment does not fit
Contact the lender before the deadline to discuss options and consequences. Bring the monthly amount you can fund and the dates of income changes. Check whether an offer auto-renews if you take no action. A longer amortization may lower payments while increasing the total interest paid; it requires agreement, not just a calculator change.
See it in practice
A smaller payment with an upfront cost
Fictional cash-flow comparison: one offer is $100 less per month but switching costs $1,200 upfront. $1,200 ÷ $100 = 12 months to recover that cash outlay if the difference stays constant. This is only a cash timing illustration: it excludes different principal repayment, tax, discounting and later rate changes. Compare ending balances as well before calling it a cheaper mortgage.
Check your understanding
Does renewing mean you start a new full amortization?
Not automatically. Confirm the remaining repayment period and whether a proposed change extends it. The term and amortization are separate.
A useful next step
- Write down the expiry date and when each offer expires.
- Request a written list of switching costs and who pays them.
- Use Mortgage Renewal to explore entered rates and payment assumptions; obtain approval and contractual terms from the lender.
Inspect the sources
Primary references checked September 18, 2026. A source check is not professional financial or legal review.
- FCAC: renewing your mortgageCurrent at check · 21-day notice: federally regulated financial institutions
- FCAC: mortgage terms and amortizationCurrent at check · Canada; contract-specific