Can I renew my mortgage early?

Often, yes: in Canada, many lenders let you renew with them without a penalty in the months before your term ends. Some offer early renewal further out. If you renew or switch well before maturity, you may pay a prepayment penalty or have it built into a blended rate, so compare that cost with waiting.

Early renewal with your current lender

Your term is your current contract; it ends on your maturity date. Lenders set their own windows for early renewal. Within that window, you can generally lock in your next term with your current lender without a penalty. The window and terms are in your mortgage agreement or available from your lender, and they vary.

Federally regulated lenders must send a renewal statement at least 21 days before your term ends (source: Financial Consumer Agency of Canada, checked October 2026). You do not have to wait for the statement: you can ask for your renewal options earlier.

Early renewal outside the window

If you want to renew earlier, some lenders offer a blend and extend: they combine your current rate with their rate for a new term, and extend your term. You avoid a separate penalty payment, but the cost of breaking your current rate is effectively built into the blended rate. A blend and extend can be worth it if rates are rising and you want certainty, but it limits your ability to compare other lenders.

Breaking your mortgage outright to start a new one usually means a penalty. On a fixed mortgage, the penalty is typically the higher of three months' interest or the interest rate differential. On a variable mortgage, the penalty is commonly three months' interest. Your contract governs.

Switching lenders early

You can also arrange a switch to another lender ahead of time. Many lenders will review your application in advance and hold an offer for a period, then close on your maturity date, subject to lender approval.

Since November 21, 2024, OSFI does not expect a stress test on an uninsured straight switch to another federally regulated lender, with no increase in amount or amortization. Insured mortgages can also switch at renewal without re-qualifying (source: Canadian Mortgage Charter, Financial Consumer Agency of Canada briefing note, checked October 2026).

Closing a switch before maturity triggers your current lender's prepayment penalty, so most people time the switch to close on the maturity date.

When renewing early fits, and what to check first

• Early renewal can make sense if you want certainty and can lock a term without a penalty inside your lender's window.
• Compare first, because renewing early with your current lender stops you shopping the market. Your lender's offer is one offer, not the only one.
• Run the numbers on any blend and extend or early break, using the lender's written penalty statement.

What to do next

If your renewal is coming up, use our call-me-back form and we will compare your options before you commit. You can also read our guide to negotiating your renewal.