Should I sign my bank's renewal letter as is? (Ontario)

In Ontario, signing your bank's renewal letter as is can be the right choice, once you have read it, compared it and asked your lender for a better offer. The letter is your lender's offer for the next term, and the Financial Consumer Agency of Canada notes that you may qualify for a lower rate than the one the letter quotes. Signing as is makes sense when, after that check, nothing better is available that is worth the trouble.

What a renewal letter is

A renewal letter, or renewal statement, is your current lender's offer to continue your mortgage for a new term. The term is the length of the contract (for example, five years). The letter is not a bill, and in most cases you are not obliged to accept it.

What the renewal statement has to tell you, and when it arrives

Federally regulated lenders, such as the banks, must send the renewal statement at least 21 days before your term ends, or tell you they will not renew. Ontario credit unions are provincially regulated and are not covered by that federal rule (source: Financial Consumer Agency of Canada, checked October 2026).

For federally regulated lenders, the statement lists the balance at the renewal date, the interest rate, the payment frequency, the term, and any charges or fees that apply. The statement also says the offered rate will not go up before the renewal date (source: Financial Consumer Agency of Canada, checked October 2026).

Our page on how to read a renewal letter walks through each line and what it means for your decision.

If you do nothing

The Financial Consumer Agency of Canada says that "if you don't take action, the renewal of your mortgage term may be automatic". A lender that plans to renew automatically says so in the statement (source: Financial Consumer Agency of Canada, checked October 2026). Doing nothing is a decision too: it usually means accepting the term and rate the lender chose for you.

Three things to do before you sign

1. Read the letter. Check the term, whether the rate is fixed or variable, the new payment, and any fees. Look for the deadline to respond.
2. Compare the offer. See what other banks, credit unions and monoline lenders (lenders that generally work only through mortgage brokers) would offer for the same balance and term. At the end of your term you can switch without a prepayment penalty.
3. Ask for a better offer. You can negotiate with your current lender. The Financial Consumer Agency of Canada says you "may qualify for a discounted interest rate that is lower than the rate quoted in your renewal letter" (checked October 2026). Many lenders have a renewal or retention team that handles these requests.

When signing as is can be right

Staying with the offer in the letter is a real result, not a failure. Signing as is can make sense when:

• you have compared, and the gap is small once switching costs are counted;
• your lender has already improved the offer;
• your income or credit has changed, and a new application elsewhere would be harder.

Some borrowers also value keeping things simple with a lender they know. What matters is that signing is a choice you made after looking, not a default.

What to do next

Put your 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 your letter with the lenders we work with and tell you plainly whether signing as is makes sense.