Renewing Your Mortgage: What to Do Before Your Term Ends

Your mortgage term ends long before your mortgage does, and every renewal is a chance to get a better deal or change direction. Here is what to expect as your renewal date approaches, and how to make the most of it.

The short version

When your lender has to contact you

A federally regulated lender, such as a bank, must give you a renewal statement at least 21 days before the end of your term. It sets out your balance at renewal, the interest rate, your payment frequency, the term and any charges or fees, and it must say that the rate offered won't go up before your renewal date. If the lender won't renew your mortgage, it must tell you at least 21 days ahead.

Under the Canadian Mortgage Charter, the federal government also expects lenders to contact homeowners four to six months before renewal to explain their options. The Charter sets out expectations; it isn't law.

If your mortgage is with a provincially regulated BC credit union, these federal rules may not apply in the same way, so ask about its renewal process.

Start early

Twenty-one days is not much time to compare offers. Many lenders let you renew about 120 days, or four months, before your term ends without a prepayment charge, and some allow more. Renewing earlier than that can mean extra fees, so ask your lender how its window works.

Shopping around matters. In a 2026 study of mortgage renewal decisions by the Financial Consumer Agency of Canada (FCAC), 20% of mortgage holders never compared lenders when shopping for their mortgage, and 13% didn't know negotiating was an option.

Don't let it renew by default

FCAC notes that if you don't take action, your mortgage may renew automatically, which means you may not get the best rate and conditions. If your lender plans to renew automatically, your renewal statement will say so. Read it carefully and respond before the deadline.

Switching lenders at renewal

• No stress test for a straight switch. Since November 21, 2024, an uninsured mortgage can move to another federally regulated lender at renewal without the stress test, as long as the loan amount and the remaining amortization don't increase. Insured mortgage holders can also switch at renewal without requalifying under the stress test. The new lender still reviews your application.
• Costs to ask about. Switching can involve discharge, registration, transfer or assignment fees, an appraisal if needed and other administration fees, and you may need to meet with a lawyer or notary. Ask whether the new lender will cover some or all of these costs.
• Collateral charges. If your mortgage is registered as a collateral charge, you will need to repay or transfer every loan secured by it.

Renewal is a chance to rethink

At renewal, you can choose a different term or rate type, change your payment frequency, or pay down some or all of your balance without a prepayment penalty. If you want to borrow more, that is a refinance, and you will have to qualify again, including the stress test. Extending your amortization can also mean requalifying, and it rules out the stress test exemption if you switch lenders, so ask first. For more on how rates affect your payments, see Understanding Interest Rates.

What renewals look like in 2026

In its May 2026 Financial Stability Report, the Bank of Canada said the last of the five-year, fixed-payment mortgages taken out during the pandemic, about 12% of all outstanding mortgages, would renew over the following 12 months, with payments up about 15% on average. The other mortgages renewing over the same period, about 14% of all outstanding mortgages, were expected to see no change in payments on average. If your payment is likely to rise, talk to your lender early about your options.

If you might move soon

If you could sell in the next few years, think about flexibility before you sign: a shorter term, an open or convertible mortgage, or a portable one you can take to your next home. I explain porting in Buying and Selling at the Same Time.

Questions homeowners often ask me

When will my lender send my renewal statement?

A federally regulated lender must send it at least 21 days before your term ends. Under the Canadian Mortgage Charter, lenders are also expected to contact you four to six months before renewal.

Can I switch lenders at renewal without the stress test?

Yes, if you move to another federally regulated lender without increasing your loan amount or amortization. This has applied to uninsured mortgages since November 21, 2024, and insured mortgage holders can also switch without requalifying under the stress test.

How early can I renew my mortgage?

Many lenders let you renew about 120 days before your term ends without a prepayment charge. Renewing earlier may mean extra fees, so check with your lender.

What happens if I don't respond to my renewal offer?

Your mortgage may renew automatically, which may not get you the best rate or terms. Your renewal statement will say if your lender plans to renew automatically.

Does it cost money to switch lenders at renewal?

There can be discharge, registration, appraisal and other fees, and you may need a lawyer or notary. Some lenders will cover part or all of these costs, so ask.

Thinking about moving instead of renewing? See how much house you can afford, try my mortgage calculator or find out what your home is worth.

This article is general information, not financial advice. For FCAC's guide, see renewing your mortgage.