Mortgage renewal options in Canada compared
Renewal choices, rate types and ways to change your mortgage at maturity, compared on how they work and what to watch out for.
This table compares the choices you have at the end of a mortgage term in Canada: staying or moving, rate types and term styles, and ways to change the mortgage at the same time. It does not rank lenders or show real rates, because offers depend on your balance, equity, insurance status, credit and the lender. Use it to decide what to ask for, then compare actual written offers with the renew-vs-switch calculator. Select a column header to sort, or filter the table by keyword.
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| 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 |
| Variable or adjustable rate | Rate moves with the lender's prime rate; adjustable payments change, fixed-payment versions change the principal paid | Borrowers who can absorb payment rises and value a three-month interest penalty | Fixed-payment versions can reach a trigger rate and reset at renewal to a much higher payment |
| Open mortgage | Can be paid off at any time without penalty; rate is usually higher | Short-term needs such as an imminent sale or large lump sum | Costs more interest for every month you keep it |
| Early renewal or blend-and-extend | Renew before maturity or blend your current rate with a new rate for a new term | Borrowers who want to lock a rate before maturity | Check whether a penalty or a blended rate is fair compared with waiting |
| Extend the amortization at renewal | Spread the balance over more years to lower the payment | Households facing a large payment increase | More total interest; insured mortgages have stricter limits; may need approval |
| Lump-sum prepayment at maturity | Pay down principal on the renewal date, usually without penalty | Borrowers with savings who want a lower balance before the new rate applies | Keep an emergency fund; compare with TFSA or RRSP use |
| Refinance at renewal | Borrow more than the current balance, up to 80% of the home's value for most uninsured refinances | Consolidating higher-interest debt or funding renovations | Counts as a new uninsured mortgage: full qualification and possibly higher rate |
Penalty methods, early-renewal windows, prepayment privileges and switching fees vary by lender, so read your mortgage contract and ask for written figures. Rules on the stress test, insured mortgages and renewal statements come from OSFI, CMHC and the Financial Consumer Agency of Canada; provincially regulated credit unions and caisses may apply different rules. In Quebec, the Autorité des marchés financiers regulates mortgage brokers and Desjardins caisses. Check the Financial Consumer Agency of Canada, OSFI and CMHC for current rules.