Is my bank's renewal offer good? (Ontario)

In Ontario, your bank's renewal letter is an opening offer, not the final word. The Financial Consumer Agency of Canada says you can negotiate with your current lender, and you may qualify for a discounted rate lower than the one in the letter (checked October 2026). If the letter holds up against a written offer from another lender for the same balance, term and amortization, on the rate and the other terms, staying is the honest answer.

What the renewal letter tells you

A federally regulated lender, such as a bank, must send a renewal statement at least 21 days before your term ends, or tell you it will not renew. The statement shows your balance at the renewal date, the interest rate, the payment frequency, the term and any charges or fees. The statement also says the offered rate will not go up before the renewal date (source: Financial Consumer Agency of Canada, checked October 2026). Ontario credit unions are provincially regulated and are not covered by that federal rule.

If you do nothing, the renewal may be automatic. A lender that plans to renew automatically says so in the statement (source: Financial Consumer Agency of Canada, checked October 2026). Our guide to reading a renewal letter goes through the statement line by line.

What to compare in a renewal offer

• The rate for the same term, against a written offer from another lender, not an advertised rate.
• Other term lengths and conditions: the letter may show only one term. Ask what the lender offers for other term lengths, and whether your prepayment privileges and penalty method stay the same.
• Switching costs: a new lender may charge set-up fees and an appraisal fee. You can ask the new lender to cover some or all of your switching costs (source: Financial Consumer Agency of Canada, checked October 2026). Your current lender may also charge a discharge fee.
• The stress test: since November 21, 2024, OSFI does not expect lenders to apply the stress test when an uninsured mortgage moves to another federally regulated lender without a larger amount or a longer amortization (source: OSFI, checked October 2026). Insured mortgages can also switch at renewal without re-qualifying (source: Canadian Mortgage Charter, Financial Consumer Agency of Canada briefing note, checked October 2026).
• The charge type: a collateral charge can make switching more involved than a standard charge.

A worked example of a competing offer

Illustrative, not a quote. You owe $450,000 at renewal. A written offer from another lender is 0.25 percentage points below your letter for the same five-year term and the same amortization.

1. First year: 0.25 percentage points of $450,000 is about $1,125 of interest.
2. Over the term: the balance falls as you pay it down. Over five years the difference is about $5,300, a little less than the full 5 × $1,125 = $5,625.
3. Against the costs: if switching costs you a few hundred dollars after the new lender's contribution, moving saves several thousand. If your bank matches the offer, you keep the saving and stay.

When staying is the right call

Staying makes sense when, once you have asked, your lender's offer sits close to the competing one and switching costs would use up the difference. Staying can also make sense when your income or credit has changed. A new lender must approve you and may use different criteria (source: Financial Consumer Agency of Canada, checked October 2026), so staying can be the surer path.

"Stay" is a real result. When your bank's offer holds up, we say so.

What to do next

Put your renewal letter's numbers into the offer check. Or go to Can your bank do better?, and we will compare your bank's offer with the lenders we work with. If staying is the better deal, we will tell you.