Does switching from my bank at renewal hurt my credit score? (Canada)

It can: in Canada, moving your mortgage away from your bank at renewal usually means a new application and a credit check, which can affect your credit score. The effect is limited when you shop sensibly: the Financial Consumer Agency of Canada says the credit bureaus treat mortgage quotes from several lenders within a 2-week window as one inquiry. Checking your own credit report or score does not affect your score at all.

Why switching involves a credit check

When you renew with your current lender, it already holds your mortgage, and renewing generally does not need a new application. Some lenders may still review your account, so ask your lender what it does at renewal.

Switching is different. The Financial Consumer Agency of Canada says the new lender must approve you and may use different criteria from your current lender (source: Financial Consumer Agency of Canada, checked October 2026). Part of that approval is generally a look at your credit report, which records a lender inquiry.

What a credit inquiry does

The Financial Consumer Agency of Canada puts it plainly: "Credit inquiries, also called credit checks, affect your credit score" (source: Financial Consumer Agency of Canada, checked October 2026). A hard inquiry, sometimes called a "hard hit", is a check a lender makes when you apply for credit. A hard inquiry appears on your report and can affect your score.

Too many hard inquiries close together may suggest you are seeking credit urgently.

Checking your own credit is different. When you look at your own credit report or score, your score is not affected (source: Financial Consumer Agency of Canada, checked October 2026).

The 2-week window for mortgage quotes

Shopping around does not mean a separate hit for every lender. The Financial Consumer Agency of Canada says that when you shop for a mortgage or car loan, the credit bureaus treat quotes from several lenders within a 2-week window as one inquiry (checked October 2026).

In practice, many borrowers do their comparing in a tight burst: gather the renewal letter, decide what they want, then get quotes within the same two weeks. When you work with a mortgage broker, your credit is often checked once and the application compared across several lenders.

How long an inquiry stays on your report

Lender inquiries stay on your credit report for 3 years with Equifax and 6 years with TransUnion (source: Financial Consumer Agency of Canada, checked October 2026). Staying on the report is not the same as weighing on your score for that whole time; the inquiry is one item among many, and your payment history generally matters more.

Is a switch worth the credit inquiry?

For many borrowers, yes. A single mortgage inquiry is a small item set against the possible saving from a better offer over a whole term.

The inquiry can matter more if you are about to apply for other credit at the same time, or if your credit is already under strain. In those cases, it helps to plan the order of applications.

The new lender still decides. Any switch is subject to lender approval, and the new lender will weigh your full credit history, not just the latest inquiry.

What to do next

Before you apply anywhere, put your renewal letter through the offer check to see what to ask about. Or bring the letter to us through Can your bank do better?: we compare the offer with the lenders we work with, so you do not have to apply lender by lender.