Mortgage renewal checklist: what to do in the four months before

Start preparing for your mortgage renewal in Canada about four months before your term ends. Four months gives you time to review your situation, compare your lender's renewal offer with other lenders, and lock in a rate hold if you decide to move. Switching lenders at the end of a term carries no prepayment penalty. Since November 2024, most borrowers can also switch without passing the stress test again, as long as they do not borrow more or extend the amortization.

How mortgage renewal works

Your mortgage has two time frames. The amortization is the total time it will take to pay off the loan, often 25 or 30 years. The term is the length of your current contract with the lender, often a few years.

When the term ends, the remaining balance comes up for renewal. You can renew with your current lender, switch to a different lender, or refinance if you need to change the amount.

Renewal is one of the few moments when you can move your mortgage without paying a penalty for breaking it. Treat your renewal as a decision, not a formality.

Four months before, review your situation

Mark your maturity date, the day your term ends, in your calendar, and work back from there. About four months out, take stock:

• What is your remaining balance and amortization?
• Has your income, job or household changed since you last qualified?
• Do you have other debts, such as credit cards or a car loan, that you would like to address?
• Do you plan to sell, move or renovate in the next few years?
• Would you rather have a payment that stays the same, or one that can move with rates? See fixed vs variable.

Your answers to the questions above shape what kind of renewal you need. If you might sell soon, a shorter term or more flexible prepayment terms may matter more than anything else. If you want to borrow more, you are looking at a refinance, not a straight renewal.

Three to four months before, compare your options

Rate holds are commonly 90 to 120 days, depending on the lender, so three to four months before renewal is when shopping makes sense. A broker can compare offers across lenders on your behalf.

Look beyond the rate to:

• the term length;
• prepayment privileges (how much extra you can pay each year without a penalty);
• the penalty to break the mortgage early;
• whether the mortgage can be moved to a new home.

At least 21 days before, read your renewal statement

Federally regulated lenders must send you a renewal statement at least 21 days before your term ends. The renewal statement sets out the rate, term and conditions your lender is offering. Provincially regulated lenders, such as Ontario credit unions, are not covered by this federal rule.

Read the statement carefully. Some lenders send the renewal statement close to the deadline, which leaves little time to compare. If you have already done your homework, you can answer the statement with confidence.

Check what your contract and statement say about what happens if you do not respond, and reply before the date given so the decision stays yours.

Before the deadline, decide whether to stay or switch

Staying with your lender is usually the simplest path. Staying typically means no new appraisal, no legal work and little paperwork. The question is whether your lender's renewal offer is competitive with what other lenders would give you.

Switching moves the mortgage to a new lender at the end of the term. A switch takes more paperwork and some lead time, but a switch can get you terms that suit you better. Two rule changes have made switching easier:

1. Since November 21, 2024, an uninsured mortgage switched to another federally regulated lender at renewal does not have to be re-stress-tested, provided the amount and amortization do not increase.
2. Insured mortgages, those that had less than 20% down, can also be switched at renewal without re-qualifying (source: Canadian Mortgage Charter, Financial Consumer Agency of Canada briefing note, checked October 2026).

The new lender still reviews your application and decides whether to approve it. More on the stress test is in the mortgage stress test explained.

What switching lenders at renewal can cost

At the end of a term there is no prepayment penalty to move your mortgage. Switching can still carry other costs:

• A discharge fee from your current lender to release its mortgage.
• Legal or registration costs to register the new mortgage on title.
• In some cases, an appraisal of your home.

The new lender sometimes covers some or all of these switching costs to win your business. Ask for the full list of costs in writing before you decide, and compare the costs with the difference in the offers. A real-estate lawyer can confirm the legal steps for your property.

If you need to borrow more

If you want to add funds, for example to renovate or pay off higher-interest debt, adding funds is a refinance rather than a switch. A refinance means re-qualifying, including the stress test.

With a federally regulated lender, you can borrow up to 80% of your home's appraised value. Refinancing at renewal avoids a penalty for breaking your term. Our pages on refinancing and debt consolidation explain the options.

A renewal timeline to keep

1. Four months out: note your maturity date and review your goals.
2. Three to four months out: compare offers and secure a rate hold if you may switch.
3. At least 21 days out: read your lender's renewal statement.
4. Before the deadline: sign with your current lender or complete the switch.

What to do next

If your renewal is coming up in the next few months, use our call-me-back form and we will help you compare your lender's offer with the alternatives. You can read more on our renewal page. Any switch or refinance is subject to lender approval.