Review your renewal before you sign it.
Your renewal letter is your current lender's offer. Other lenders may offer better terms, and renewal is usually the simplest and least expensive time to switch.
Renewal review
Compare your lender's offer with other lenders, comparing terms and prepayment options as well as the rate.
Lender transfers
Moving your mortgage to a new lender at maturity, usually without a prepayment penalty.
Refinancing
Changing the amount or amortization: accessing equity, consolidating debt or reducing payments.
Switching lenders at renewal
At maturity you can move your mortgage to another lender without a prepayment penalty. Since November 2024, federally regulated lenders generally don't apply the stress test to a straight switch at renewal, where the amount and amortization stay the same.
Start reviewing about four months before your maturity date. Many lenders will hold a rate for 120 days.
Refinancing
A refinance changes the mortgage itself: a larger amount, a longer amortization or a different structure. Federally regulated lenders generally allow up to 80% of the home's value, and you must qualify again, including the stress test.
Refinancing in the middle of a term usually means a prepayment penalty. On a fixed-rate mortgage that's often the greater of three months' interest or an interest rate differential, which can be large. Compare the penalty with the savings before deciding.
Amortization and payment
Extending the amortization lowers the payment but increases the total interest you pay. Shortening it does the opposite. The payment calculator below shows the trade-off for your numbers.
Qualification depends on lender underwriting. Rates, terms, fees and penalties vary by lender and are subject to change. Examples are illustrative only and are not a commitment to lend. Content reviewed October 20, 2026. Lending rules change; confirm current requirements before relying on them.
Put the numbers in perspective.
Nominal rate, compounded semi-annually (the Canadian convention for fixed rates).
Estimated monthly payment
$3,320.84
- Effective annual rate
- 4.551%
- Rate per payment period
- 0.3715%
- Number of payments
- 300
- Total interest, if the rate never changed
- $396,251
Illustrative only. Assumes one rate for the whole amortization, while real mortgages renew every few years at the rate available then. Lenders round and schedule payments in their own way. Not a rate offer or an approval.
Include any secured line of credit or second mortgage on the same property.
Loan-to-value
65.00%
- Estimated equity
- $315,000
Lenders use LTV to size the loan and price the risk. Maximum LTVs differ by purpose, property and lender: for example, refinances with federally regulated lenders are generally limited to 80%.
Uses your own value estimate. Lenders rely on their own appraisal, which may be different.
Rental and other property income, less vacancy and operating expenses, before mortgage payments.
Total mortgage payments over 12 months.
Debt service coverage ratio
1.25x
The property's income covers its mortgage payments 1.25 times. Each lender sets its own minimum and calculates income and expenses its own way.
Illustrative only. Lenders underwrite NOI using their own vacancy, expense and reserve assumptions.
Common questions
When should I start reviewing my renewal?
About four months before your maturity date. That leaves time to compare options, and many lenders will hold a rate for up to 120 days.
Do I need to pass the stress test to switch lenders at renewal?
For a straight switch, where the amount and amortization stay the same, federally regulated lenders generally no longer require it. Increasing the amount or extending the amortization is treated as a refinance, which does require qualifying again.
Is there a cost to switching lenders?
Some lenders charge a discharge fee, and there may be legal or appraisal costs. Many lenders cover some of these costs for switches. You'll see the costs before you decide.
Related mortgage services
Let's discuss your mortgage.
Whether you're purchasing, refinancing, or reviewing an existing mortgage, start with a conversation about your circumstances and available options.