When can I switch lenders at renewal?

In Canada, you can switch to another lender at the end of your mortgage term without paying a prepayment penalty. Many borrowers start comparing several months before their maturity date. The new lender needs time to approve you, and your lawyer needs time to move the mortgage.

Your renewal date and your term

Your term is the length of your current contract, while your amortization is the total time to pay off the loan. When the term ends, your mortgage "matures". You can then renew with your current lender, switch to a new one, or pay the mortgage off, all without a penalty.

Federally regulated lenders, such as the banks, must send you a renewal statement at least 21 days before your term ends, or tell you they will not renew (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 not much time to compare offers, so many borrowers start before the letter arrives.

Switching without 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 at renewal. The exemption holds as long as you do not increase the amount or the 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). A move with no increase is a straight switch.

If you want to borrow more, extend your amortization, or add a HELOC, the change is a refinance. You will be stress-tested at the greater of your contract rate plus 2 percentage points, or 5.25%.

The new lender still reviews your application. The exemption removes the stress test, not the lender's own decision.

A simple timeline for switching at renewal

1. Several months before maturity: check your balance, your current rate and your maturity date. Decide if you want the same amount or a change.
2. A few months before: compare your lender's likely renewal offer with what other banks, credit unions and monoline lenders would offer. Many lenders let you hold an offer for a period before closing.
3. When you have an approval: your lawyer, or the new lender's legal process, arranges the transfer for your maturity date.
4. On maturity: the new lender pays out the old mortgage, and your new term begins.

Switching before maturity

You can switch before your term ends, but you will usually pay a prepayment penalty. On a fixed mortgage, the penalty is typically the higher of three months' interest or the interest rate differential. The closer you are to maturity, the more likely it is that waiting saves money.

What to do next

To see whether staying or switching suits you, try the renewal vs switch tool; results are estimates only, not an offer or advice. Or use our call-me-back form and we will compare your offer with other lenders.