Mortgage Renewal
Signing a new term for your remaining balance when your mortgage term ends, with the option to negotiate or switch lenders.
A mortgage renewal happens when your term ends but you still owe money on the loan. The term is the length of your current contract, which is usually shorter than the time needed to pay off the mortgage. At renewal, you sign a new term for the remaining balance at the rates then on offer.
Federally regulated lenders, such as banks, must send a renewal statement at least 21 days before the term ends. It must show the balance, rate, payment frequency, term and any fees. A lender that will not renew must also give 21 days' notice. If you do nothing, the renewal may happen automatically on the lender's terms.
The renewal offer is a starting point, not the best rate available. The Financial Consumer Agency of Canada suggests shopping around a few months before the term ends, rather than waiting for the letter. Your current lender may offer a lower rate if you show proof of better offers from other lenders or brokers.
You can also move the same loan amount to a new lender, who must approve your application. Since November 21, 2024, OSFI no longer requires the minimum qualifying rate, often called the stress test, for uninsured straight switches. A straight switch keeps the same loan amount and does not extend the amortization. The new lender still assesses whether you can afford the loan.
Switching can involve discharge, registration, transfer or appraisal fees, so ask the new lender whether it will cover them. A collateral charge can add extra costs. Think twice before extending your amortization to lower payments, since it can add thousands of dollars in interest. A larger loan or longer amortization may also trigger a new mortgage loan insurance premium.
Sources
- FCAC: Renewing your mortgage
- OSFI letter: minimum qualifying rate for uninsured straight switches (Nov 21, 2024)
Last reviewed October 16, 2026.
Go deeper
Related terms in Mortgage & Buying
- Mortgage Stress Test A federal rule that makes you qualify for a mortgage at a higher rate than your contract rate, to show you could handle higher payments.
- Trigger Rate The interest rate at which a fixed payment on a variable-rate mortgage covers only interest, so nothing goes toward the principal.
- Amortization The total time it would take to pay off your mortgage at your current rate and payment, usually much longer than your rate term.
- Closing Costs The one-time fees beyond your down payment needed to complete a home purchase, often 1.5% to 4% of the price.
General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.