Should I negotiate my mortgage renewal with my bank? (Ontario)

Yes, in Ontario it is generally worth asking your bank to improve its renewal offer, and a written offer from another lender gives the request weight. The Financial Consumer Agency of Canada says you can negotiate and may qualify for a discounted rate lower than the one in your renewal letter (checked October 2026). Asking costs nothing, and if your lender will not move, you can switch at the end of your term without a prepayment penalty, subject to the new lender's approval.

How much time you have

Federally regulated lenders, such as the banks, must send a renewal statement at least 21 days before your term ends (source: Financial Consumer Agency of Canada, checked October 2026). Ontario credit unions are provincially regulated and are not covered by that federal rule. Twenty-one days is short notice for getting and comparing offers.

Under the Canadian Mortgage Charter, federally regulated lenders are expected to communicate about renewal options 4 to 6 months in advance (source: Financial Consumer Agency of Canada, checked October 2026). The Charter is not legislation, but it marks the window many borrowers use. Brokers can often hold a rate about four months before renewal. Starting around then gives you a held offer to negotiate with.

What to ask your bank for at renewal

Raise four things, not only the rate: the rate, the costs of switching or discharging the mortgage, your prepayment room, and any cash-back or fee coverage. Our page on how to negotiate with your bank has the steps and a short script. The renewal negotiation guide has a printable checklist.

Whether switching saves more than it costs

Negotiating works when your lender can close the gap. If your lender will not, the question becomes whether the saving from moving outweighs the cost of moving.

Illustrative, not a quote. You owe $300,000. Your lender's final offer is 0.15 percentage points above a written offer from another lender for the same term and amortization.

1. First year: 0.15 percentage points of $300,000 is about $450 of interest.
2. Five-year term: with the balance falling as you pay it down, the gap adds up to about $2,100 over the term, a little less than 5 × $450 = $2,250.
3. Switching costs: say moving costs you $800 in fees after the new lender's contribution. The saving repays the switching costs in under two years and leaves about $1,300 over the term ($2,100 − $800).
4. One-year term: the same gap saves about $450, less than the $800 it costs to move, so staying costs less.

When signing as is makes sense

Signing your lender's offer can be the right choice when, after you have asked, your lender's offer is close to the competing offer. Signing can also be right 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).

If your balance is small, the saving may not cover the effort and the costs. "Stay" is a real result.

What to do next

Go to Can your bank do better?, and we will put a written offer from the lenders we work with beside your renewal letter, subject to lender approval. Then you negotiate with something in your hand. Or check your letter's terms first with the offer check.