Mortgage renewal in Canada: a step-by-step checklist

Last updated Oct 2026.

For millions of Canadians, a mortgage renewal is the biggest money decision they make without really noticing. The renewal letter arrives, the rate looks reasonable, you sign, and that's that for another five years. But renewal is one of the few moments when you can change almost everything about your mortgage without paying a penalty: the lender, the rate type, the term, the amortization and the prepayment privileges.

This checklist walks through what to look at, in roughly the order to do it. When you want to see real numbers, the mortgage payment calculator and the mortgage prepayment calculator will help.

Why renewal matters more than it looks

Most Canadian mortgages are amortized over 25 or 30 years but signed for a much shorter term, usually five years. At the end of each term, the remaining balance has to be renewed at whatever rates are on offer then. If rates are higher than when you last signed, your payment can jump noticeably even though your balance is lower.

A small rate difference adds up. On a $400,000 balance over 25 years, the gap between a 4.5% and a 4.1% rate is roughly $90 a month, or more than $5,000 over a five-year term. That's real money for an hour or two of comparison shopping.

Step 1: Start about four to six months out

Many lenders will hold a rate for 90 to 120 days, and under federal rules your lender must send you a renewal statement at least 21 days before the term ends. Twenty-one days isn't much time to shop. Mark your calendar about four to six months before your maturity date so you can:

• find your exact maturity date and current balance (on your annual statement or online banking),
• check your credit report for errors with Equifax and TransUnion,
• gather recent pay stubs, a notice of assessment and a property tax bill, since a new lender will ask for them.

Step 2: Know what you have now

Before comparing offers, write down the basics of your current mortgage: rate, payment, remaining amortization, payment frequency, prepayment privileges and whether it's a standard or collateral charge. A collateral charge is registered for more than the loan amount and can make switching lenders more expensive, because the new lender may need to register a fresh charge with a lawyer.

Step 3: Get at least three quotes

The first renewal offer from your current lender is often not its best rate. Get quotes from:

1. your current lender, and ask directly whether they can do better,
2. another bank or credit union, and
3. a mortgage broker, who can compare many lenders at once and is usually paid by the lender.

Compare the whole package, not only the rate: prepayment limits, portability if you might move, how penalties are calculated if you break early, and any fees.

Step 4: Switching lenders is easier than it used to be

Since late 2024, federally regulated lenders no longer have to apply the mortgage stress test when an uninsured borrower simply switches their existing mortgage to a new lender at renewal, as long as the balance and amortization aren't increased. Insured mortgages already had this flexibility. That change removed one of the biggest reasons people felt stuck with their existing lender.

Switching still has some costs to check: a possible appraisal, legal or discharge fees, and the paperwork. Many lenders cover some of these to win your business, so ask.

Step 5: Fixed or variable?

There's no permanently right answer, but the trade-off is simple:

The penalty difference matters if there's any chance you'll sell, refinance or move before the term ends. The mortgage penalty calculator shows roughly what breaking each kind might cost.

Step 6: Choose a term length

Five years is the default, but shorter terms (one to three years) can make sense if you expect to move, want flexibility, or think rates may fall. Longer terms give more certainty. Ask yourself: what is likely to change in my life during the term, and how much would a higher payment hurt?

Step 7: Decide on amortization

At renewal you can usually keep your remaining amortization or, in some cases, shorten it. Shortening it raises the payment but cuts total interest. Extending it lowers the payment but costs more over time, and with your current lender it may count as a change that needs approval; with a new lender it can mean requalifying under the stress test. If your payment is going up at renewal, run both versions in the payment calculator to see the trade-off in dollars.

Step 8: Plan your prepayments

Renewal day is the one time you can usually pay down any amount without penalty. If you have a lump sum available, such as savings beyond your emergency fund, putting some of it against the mortgage at renewal reduces the balance your new rate applies to. During the term, most lenders allow a yearly lump sum (often 10% to 20% of the original balance) and payment increases. The prepayment calculator shows how much interest and time extra payments can save.

Before paying down your mortgage, it's worth comparing against other uses of the money: high-interest debt, unused TFSA or RRSP room, and an adequate emergency fund. Our emergency fund plan covers the cushion first.

Step 9: Watch the auto-renewal trap

If you do nothing, many lenders will automatically renew you, sometimes at a posted rate that's higher than what you could negotiate, or into a short open term. Respond to the renewal letter in writing, and don't let the maturity date pass without a decision.

A quick renewal checklist

1. Find your maturity date and set a reminder 4 to 6 months ahead.
2. Check your credit report and gather documents.
3. Get at least three quotes, including a broker.
4. Compare rate, prepayment privileges, penalties and portability.
5. Decide fixed or variable, and the term.
6. Run your new payment through the calculator.
7. Consider a lump-sum prepayment on renewal day.
8. Reply to your lender in writing before the deadline.

FAQ

Can I renew early?
Many lenders allow an early renewal within about 120 days of maturity without a penalty. Renewing earlier than that is usually treated as a blend-and-extend or a break, which may cost something. Ask your lender.

Does shopping around hurt my credit score?
Several mortgage inquiries in a short window are generally treated as rate shopping and have a small, temporary effect. Checking your own report doesn't affect your score at all.

What if my payment is going up a lot?
Talk to your lender early. Options can include a different term, a different payment frequency, a prepayment at renewal, or, in some cases, a longer amortization. The federal government's Canadian Mortgage Charter sets out that lenders should offer relief options to borrowers at risk of financial hardship.

Should I use a broker?
A broker is often a quick way to see many lenders' rates, and is usually free to you. You can still compare their best offer with your own bank's.

This post is for educational purposes only and isn't financial, tax or investment advice. Rules, rates and limits can change. Confirm current details with Canada.ca, the CRA or your financial institution, and consider speaking with a qualified professional about your situation.