Renewal Rates, Costs and 2026 Rules
What sets a Canadian mortgage renewal rate, how the options compare, and the federal and provincial rules that apply in 2026.
mortgage renewal rates Canada
Mortgage renewal in Canada, worked out before your term ends
Your renewal letter is an opening offer, not a final price. These guides show how renewal rates are set, what the federal rules allow, and how to compare staying, switching or changing your term with the arithmetic shown.
- Compare your renewal offer with other lenders on payment, interest over the term and switching costs
- Use the renewal payment, renew-vs-switch and prepayment penalty calculators
- Check the rules with FCAC, OSFI, CMHC, the Bank of Canada, provincial regulators and OBSI
Explore by topic
Worked Renewal Numbers and Checklists
Payment changes, renew-versus-switch comparisons, penalties and amortization choices, with the arithmetic shown step by step.
Renewal Mistakes, Complaints and Official Sources
Costly renewal mistakes, what to do when something goes wrong with your lender, and where to check the facts.
Start here
Worked Renewal Numbers and Checklists
Mortgage renewal checklist: what to do from six months before maturity
A step-by-step Canadian mortgage renewal checklist from six months before maturity to your first new payment, with documents to gather, numbers to run and deadlines.
Renewal Mistakes, Complaints and Official Sources
Mortgage renewal mistakes that cost Canadian homeowners money
The most expensive mortgage renewal mistakes in Canada, from signing the first offer to missing switch deadlines and variable payment resets, with what each one costs and how to avoid it.
Renewal Rates, Costs and 2026 Rules
Mortgage renewal rates in Canada: how they are set and how to get a better one
How Canadian mortgage renewal rates are set, why the first offer is rarely the best, the 2026 rules on switching and renewal statements, and what to compare.
Worked Renewal Numbers and Checklists
Mortgage prepayment penalties in Canada: three months' interest vs the IRD
How Canadian lenders calculate the penalty for breaking a mortgage term early, with worked three-month interest and IRD examples, the posted-rate method and when breaking pays.
Worked Renewal Numbers and Checklists
Renew with your lender or switch? A worked comparison with every cost included
Compare a mortgage renewal offer with another lender's rate in Canada, including discharge, legal and appraisal costs, cash-back, break-even and interest over the term.
Worked Renewal Numbers and Checklists
How much will my mortgage payment go up at renewal? A worked example
Calculate the payment increase when a low-rate Canadian mortgage term ends, with a full worked example, a rate sensitivity table and three ways to soften the jump.
Tools
Mortgage Renewal Payment Calculator
Estimate your monthly payment for the next term from the balance at maturity, the renewal rate and the amortization you have left.
Renew vs Switch Lender Calculator
Compare your lender's renewal offer with another lender's rate on monthly payment, switching costs and break-even time.
Three-Month Interest Penalty Estimator
Estimate the three months' interest charge for breaking or paying out a mortgage term early, plus any discharge or administration fee.
Mortgage Renewal Checklist
Tick off the checks that matter from six months before your maturity date until the first payment of your new term.
Mortgage renewal options in Canada compared
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Renew with your current lender | Sign the renewal offer for a new term; no new registration and usually no fees | Borrowers with a competitive offer, or whose finances make re-qualifying elsewhere hard | The first offer is often higher than the lender's best rate; negotiate with written outside offers |
| Switch to another lender at maturity | New lender pays out the old mortgage and registers its own charge on the maturity date | Borrowers with a clearly lower outside offer and stable income and credit | Full application, income checks and possible appraisal; discharge and legal or notary fees unless covered |
| Five-year fixed term | Rate and payment fixed for five years; penalty usually the greater of three months' interest or an IRD | Households that want a predictable payment | IRD penalties can be large if you sell or refinance before the term ends |
| Shorter fixed term (1 to 3 years) | Rate fixed for a shorter period, then another renewal | Borrowers expecting to sell, prepay heavily or renew again when rates may differ | More frequent renewals mean more exposure to rate changes and more paperwork |
Frequently asked questions
When should I start shopping for my mortgage renewal in Canada?
Start about four to six months before your maturity date. Many lenders allow early renewal without a penalty in the last few months of a term, and many outside lenders hold a rate for around 90 to 120 days, so starting four months out lets you lock a rate and still compare it with your renewal statement.
Is the rate on my renewal letter negotiable?
Usually, yes. Renewal letters often show a rate above the lender's best discretionary rate. Get one or two written offers from other lenders or a licensed mortgage broker for the same term and rate type, then ask your lender to match or beat them. The lender does not have to, but many will.
Do I have to pass the stress test again when I renew?
Not if you renew with your current lender. Since 21 November 2024, OSFI no longer requires federally regulated lenders to apply the minimum qualifying rate to straight switches of uninsured mortgages at renewal, and insured mortgages switching at renewal were already exempt. Provincially regulated lenders can set their own rules, and you still need to meet the new lender's other criteria.
What happens if I do nothing when my mortgage term ends?
It depends on your lender and your contract. Some renew you automatically into a set term, sometimes at a posted rate rather than a discounted one, and some convert the mortgage to an open or short term. Read your renewal statement and contract, and act before the maturity date rather than relying on the default.
Does switching lenders at renewal cost anything?
Often less than people expect, but not always nothing. You may pay a discharge fee to your current lender and possibly legal or notary fees, an appraisal and registration costs. Many lenders cover some of these for a straight switch. A collateral charge or a Quebec hypothec can make the switch more expensive, so ask for the costs in writing.
Should I choose fixed or variable at renewal?
Choose based on how much payment movement you can absorb and how likely you are to break the mortgage early. Fixed gives a known payment but usually a larger penalty if you break it. Variable usually carries a three-month interest penalty but the rate can rise. Compare the payment at a rate two points higher before choosing variable.
Can I extend my amortization when I renew to lower my payment?
Often, if your mortgage is uninsured and you qualify, up to the maximum your lender allows. Insured mortgages are generally limited to their original amortization limit, although the Canadian Mortgage Charter allows temporary extensions for borrowers in financial difficulty. A longer amortization lowers the payment but increases the total interest.
Where can I complain about my mortgage lender?
Start with the lender's internal complaints process. For a federally regulated bank, if the complaint is not resolved within 56 days, or you disagree with the final answer, you can take it to the Ombudsman for Banking Services and Investments (OBSI). The Financial Consumer Agency of Canada supervises banks' compliance but does not resolve individual disputes.
How this site is made
Renewal Runway is an independent information project. Guides are drafted with the help of AI writing tools and checked against official and primary sources before publication; see our Editorial Policy. We are not affiliated with any provider mentioned on the site and do not sell products or services.