Mortgage auto-renewal: what happens if you miss your renewal date?
If you miss your mortgage renewal date, your lender may renew you automatically on the terms in your renewal statement. Here's what FCAC says that letter means — and what to do next before you lock in a rate you didn't shop.
FCAC says that if you don't take action at the end of your term, your mortgage renewal may be automatic — and you may not get the best rate or conditions. Federally regulated lenders must send a renewal statement at least 21 days before your term ends, and if they plan to renew you automatically, that statement will say so. You can still shop, negotiate or switch, but the clock is short once the letter arrives. Start a few months early. OAC.
Key takeaways
- →Auto-renewal is real. FCAC warns that doing nothing can renew your mortgage automatically, often not at your best rate or terms.
- →The renewal statement is the clue. Federally regulated lenders must send it at least 21 days before maturity, and it must say if automatic renewal is planned.
- →The letter is an opening offer, not a final price. FCAC says you may qualify for a lower discounted rate than the one quoted.
- →Shop before the letter. FCAC suggests contacting lenders and brokers a few months ahead — don't wait for the mail.
- →If you already missed the date, call your lender and a broker the same day. Confirm what you renewed onto, then compare a switch or a better stay-put rate.
Short answer: Mortgage auto-renewal means your lender rolls you into a new term on the rate and conditions in your renewal statement when you don't respond in time [1]. FCAC says that can leave you with a rate and features that aren't your best option. The fix is the same whether you're early or late: read the statement, get competing written offers, and either negotiate a match or switch lenders before you settle [1].
This guide covers only the missed-date / auto-renewal letter scenario. For word-for-word negotiation scripts, see negotiate your mortgage renewal. For the full timeline, use our mortgage renewal checklist.
What the auto-renewal letter actually is
If your mortgage is with a federally regulated financial institution (for example, a bank), FCAC says the lender must give you a renewal statement at least 21 days before the end of your term. They must also give 21 days' notice if they will not renew you [1].
That statement must include:
| Required item (FCAC) | Why it matters |
|---|---|
| Balance / remaining principal at renewal | What you're renewing |
| Interest rate offered | Opening offer — often not the best available |
| Payment frequency | Monthly, bi-weekly, etc. |
| Term | How long the new contract runs |
| Charges or fees | What you'll pay to renew |
| Rate won't increase before renewal date | Protects you from an upward move before maturity [1] |
You may get a renewal contract with the statement [1]. If the lender plans to renew you automatically, FCAC says the statement will say so [1]. That sentence is easy to skim past — it is the auto-renewal trigger.
What happens if you miss your renewal date
Short path most homeowners hit:
- Statement arrives (≥21 days out for federally regulated lenders) [1].
- You mean to shop — then life gets busy.
- Term ends; lender renews you on the stated terms because the statement said automatic renewal applies [1].
- Payments continue at the new rate. You still owe the same principal; you've started a new term.
FCAC's plain warning: if you don't take action, renewal may be automatic, and you may not get the best interest rate and conditions [1]. Auto-renewal is not a penalty in the "prepayment penalty" sense — it is simply accepting the lender's default offer by silence.
You generally still have options after maturity (ask your lender what change windows remain, and ask a broker what a switch would cost), but you lose the calm runway FCAC recommends when you shop months ahead [1].
Already staring at an auto-renewal letter? A licensed 8Twelve agent can price stay-put vs switch across 65+ lenders and put competing offers in writing, at no cost to you, OAC. Compare renewal options
What to do the week you notice you missed it
- Find the renewal statement — confirm the rate, term, fees and whether it said automatic renewal [1].
- Call your current lender the same day — ask what you renewed onto, whether the rate can still be improved, and the deadline to change your mind.
- Get at least one written competing offer from a broker or another lender. FCAC says you may qualify for a discounted rate lower than the letter, and that you can tell your lender about other offers (with proof) [1].
- Compare total cost to switch — discharge, registration, appraisal, and whether the new lender will cover some fees [1]. Federally regulated lenders underwrite to OSFI residential mortgage expectations [3]. See mortgage transfer fees and switching without a new stress test if you qualify for a straight switch.
- Check charge type — if you have a collateral charge, FCAC notes you may need to repay or transfer every loan tied to that charge before you can move [1]. That can add time; start immediately.
- Confirm everything in writing before you sign a new contract or accept a revised rate.
How to avoid auto-renewal next time
FCAC's advice is early and simple [1]:
- Start shopping a few months before the term ends — don't wait for the letter.
- Federally regulated lenders are also expected to reach out four to six months before renewal under the Canadian Mortgage Charter context covered in our negotiation guide [2].
- Treat the renewal statement as a deadline document, not junk mail.
- Put a calendar reminder 120 days and 60 days before maturity.
- Decide stay vs switch with written numbers, not the first letter rate.
For payment and amortization choices at renewal (including why stretching amortization can cost more interest), stay on FCAC's renewing page and our renewal guide [1].
Auto-renewal vs doing nothing vs switching
| Situation | Typical outcome |
|---|---|
| You ignore the statement | May auto-renew on letter terms [1] |
| You call and negotiate with proof | May get a better stay-put rate [1] |
| You switch lenders for the same balance | New approval; possible fees; ask about cost coverage [1] |
| Lender will not renew you | Must get 21 days' notice (federally regulated); arrange a new lender before maturity [1] |
Mortgage auto-renewal is what happens when silence accepts the lender's default offer. FCAC puts the warning on the renewal statement itself — read the automatic-renewal line, shop early, and if you already missed the date, treat the next 48 hours like a closing deadline. Next step: start a renewal application or read how to negotiate your renewal.
This article is for general information only and isn't financial, legal or tax advice. Rates, products and terms change without notice and are available on approved credit (OAC). The rate and terms you qualify for depend on your individual financial situation, including credit, income, property and loan-to-value. "Best rates" means the most suitable options available for your situation, not a guarantee of the lowest rate. Example rates and payments are for illustration only, as of October 2026, and are not an offer. 8Twelve Mortgage arranges mortgages through 65+ lenders and does not lend directly. Licensed across Canada — see our licences.
General information only, not legal, tax or credit advice. Renewal and switch rules differ by lender and by whether your institution is federally regulated. Collateral-charge and multi-product packages can change transfer costs. 8Twelve is a brokerage arranging mortgages with third-party lenders (65+ lenders); we do not lend. Rates and fees are OAC. Rules checked against FCAC materials on November 6, 2026.
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Last reviewed on November 7, 2026