Mortgage Renewal in Canada: What to Expect When Your Term Ends
A Canadian mortgage term typically lasts 1–5 years, at the end of which you renew — you agree to a new rate and term for the outstanding balance. It's one of the few moments where negotiation can save tens of thousands of dollars, and most Canadians leave money on the table by signing whatever their bank sends in the mail.
What happens at term end
About 120–150 days before your term ends, your lender will send a renewal offer. This offer typically contains your outstanding balance, their posted rate for various new terms, and a renewal form to sign and return. The posted rate is rarely the best available — it's the starting point for negotiation.
Staying vs switching lenders
Staying with your lender
- You are not stress-tested when renewing without increasing your loan
- Minimal paperwork — often just a signature
- Lower legal and administrative costs
Switching lenders
- You will be stress-tested at the new lender
- New lender typically covers legal and appraisal costs as a switching incentive
- Access to potentially better rates — on a $500,000 balance, 0.3% difference = $7,500 over a 5-year term
When to start shopping
Start 120 days before your maturity date. At 120 days, most lenders will let you lock in a rate, protecting you if rates rise before your renewal.
What to negotiate
- Prepayment privileges — can you make lump sum payments of 10%–20% annually?
- Payment frequency flexibility — accelerated bi-weekly payments can shave years off your amortization
- Port provisions — can you take the mortgage to a new property if you move?
Use our calculator's Renewal Stress Test tool to see what your payment would look like at different renewal rates.
