Mortgage Renewal Checklist: Start Early and Look Beyond the Rate

Short answer: start your renewal about four to six months before your term ends, get a rate hold, and compare at least two or three offers on the full terms, not just the headline rate. You don't have to accept the rate in your renewal letter, and you don't have to stay with your current lender ^[1]. These mortgage renewal tips walk you through each step.

That's also the message from brokers quoted in a Canadian Press story published October 19, 2026: treat your lender's renewal offer as the start of a conversation, begin roughly four months out (earlier if you're self-employed or your income has changed), and compare features like prepayment privileges and portability alongside the rate ^[11]. As one broker put it, your life plans "matter as much as the rate" ^[11].

If you're renewing soon, our mortgage renewal page explains how an 8Twelve agent compares your offer with 65+ lenders.

How early can I renew my mortgage in Canada?

There's no single national rule. It depends on your lender and your contract.

• Many lenders allow penalty-free early renewal a few months before maturity. For example, TD allows renewal without a prepayment charge from 120 days before maturity ^[6], and BMO from 180 days ^[7].

• Renewing earlier than your lender's window usually means breaking your mortgage (and paying a prepayment penalty) or using a blend-and-extend option, which blends your current rate with a new one ^[3].

• Your current terms stay in place until the renewal date. Under the Bank Act, if you renew early with a bank, your existing agreement continues and the renewal doesn't take effect until the scheduled day ^[8].

• Federally regulated lenders must send a renewal statement at least 21 days before your term ends, showing the balance, rate, payment frequency, term and any fees ^[1]. Three weeks isn't much time to shop, so FCAC suggests you start a few months ahead and not wait for the letter ^[1].

One point from the Canadian Press piece is worth repeating: if you accept an early renewal offer, check exactly when the new rate takes effect, so you don't give up a lower current rate before your term ends ^[11].

Your mortgage renewal checklist and timeline

See where your renewal offer stands. Compare today's best rates across 65+ lenders, OAC. Compare today's rates

Look beyond the rate: what to compare

Two offers with the same rate can cost very different amounts if your plans change. For federally regulated lenders, prepayment privileges and penalties must appear in an information box at the start of your mortgage agreement ^[2], which makes side-by-side comparisons easier.

Worked example: what a small rate difference is worth

Illustration (OAC, not an offer; illustrative rates, not current market quotes): you owe $450,000 with 22 years of amortization left and choose a 5-year fixed term.

A 0.30-point difference saves about $4,400 in payments over the term and leaves you about $2,000 further ahead on your balance. That's roughly $6,400 in total, before any switching costs a new lender doesn't cover. That's why it's worth asking.

Should you stay with your lender or switch at renewal?

How the switch rule works. Since November 21, 2024, OSFI no longer expects federally regulated lenders to apply its minimum qualifying rate when you move an uninsured mortgage from one federally regulated lender to another, as long as you don't increase the loan amount or the remaining amortization ^[5][10]. The balance can rise by up to $3,000 to cover costs such as fees, but you can't take out equity ^[10]. The new lender still underwrites you as a new client ^[10]. If you're moving to or from a provincially regulated lender, such as many credit unions, ask how that lender treats switches.

If your income has dropped, staying with your current lender may be the easier path, because a straight renewal often doesn't require a new approval. Talk to your lender or broker early so you know your options.

Renewing vs refinancing

Renewal sets a new rate and term on the same mortgage. Refinancing changes the loan itself, for example to borrow more or extend the amortization, and needs a new approval. FCAC cautions that extending your amortization to lower payments increases the interest you pay over time ^[1]. If you need funds for renovations or to pay off high-interest debt, see mortgage refinancing.

Step by step: renewing with a broker

1. Gather your documents: your latest mortgage statement, renewal offer (if you have one), ID and recent income documents.

2. Set your goals: target payment, how long you'll stay in the home, and any plans to prepay.

3. Get a rate hold with one or more lenders about four months before maturity.

4. Compare written offers on rate, term, prepayment privileges, penalty method, portability and fees.

5. Ask your current lender to match your best written offer. Give them a deadline that still leaves time to switch.

6. Choose and sign, with your lawyer or notary if you're switching, before the maturity date.

Common renewal mistakes (and what to do instead)

• Signing the first letter that arrives. Instead, compare at least two other offers first ^[1].

• Waiting for the 21-day statement. Start a few months earlier so you have time to switch if needed ^[1].

• Choosing on rate alone. If you might sell within the term, the penalty method and portability can matter more than a small rate gap.

• Extending the amortization just to lower payments. It can make sense in some cases, but it increases total interest ^[1]. Run the numbers first.

For more on how rates could move before your renewal, see will mortgage rates go up in 2027 and our look at a possible Bank of Canada rate hike in 2026.

From our desk: The clients who get the best renewal outcomes aren't the ones who guessed rates right. They're the ones who started early, had two written offers in hand, and asked their lender to do better.

A good renewal is mostly about time and comparison. Start four to six months out, hold a rate, compare full terms from several lenders, and give your current lender a fair chance to match.

Check your numbers. Estimate your new payment with our mortgage renewal calculator.

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.

Lender renewal windows (TD, BMO) are examples from those lenders' public pages as of October 19, 2026, and can change; check your own mortgage terms. Example payments use semi-annual compounding and are illustrations only.