What a lender's retention desk can and cannot do at renewal (Canada)

The retention team works within the law and your contract. The retention team cannot change the rules, and a change to your penalty terms only counts if the lender agrees to it in writing.

What a retention desk is

Many lenders have a retention or renewal team whose job is to keep existing customers at renewal or when they mention leaving. Talking to the retention team is a normal part of renewing; more on our retention desk page.

The published rules and expectations that apply at renewal

Four published rules and expectations apply, each with its source:

• The renewal statement. A federally regulated lender must send the renewal statement at least 21 days before your term ends, or tell you it will not renew (FCAC, "Renewing your mortgage"). The renewal statement lists the balance, rate, payment frequency, term and any charges or fees, as our page on the 21-day rule explains.
• Room to negotiate. The same FCAC page says you can negotiate with your current lender and may qualify for a discounted rate lower than the one in your renewal letter.
• Early contact is expected, not required. Under the Canadian Mortgage Charter, federally regulated lenders are expected to communicate proactively about renewal options 4 to 6 months in advance. The Charter is not legislation and grants no new rights (FCAC briefing note "The Canada Mortgage Charter", page dated September 9, 2025).
• Penalty information. A federally regulated lender explains how its prepayment charge is calculated and gives you a written statement of the charge on request. Both duties come from the FCAC "Code of Conduct for Federally Regulated Financial Institutions — Mortgage Prepayment Information" (page dated September 24, 2025).

Ontario credit unions are provincially regulated, so the federal 21-day rule does not cover them.

What retention desks often do, as general practice rather than a rule

Retention desks' offers and rate holds are general practice, not a published rule, and the practice varies by lender:

• Retention or renewal teams can often offer a rate below the one in the renewal letter.
• A written competing offer from another lender sometimes moves the conversation further than a verbal quote.
• Many lenders let you lock in a renewal rate some time before maturity; rate holds are commonly 90 to 120 days.

No lender promises any of these practices; a lender can decline to change its offer.

What the retention desk cannot do

• Change the law. The 21-day rule, the stress-test treatment of a straight switch and the Interest Act are not the desk's to vary.
• Change your contract by phone. Your penalty and privileges are set by your contract; a different arrangement only counts if the lender agrees to it in writing.
• Approve a new lender's offer. If you move, the new lender decides, subject to its own approval.

Sources

• Financial Consumer Agency of Canada — Renewing your mortgage, page dated 2025-10-15, checked 2026-10-26.
• Financial Consumer Agency of Canada — The Canada Mortgage Charter (briefing note, February 13, 2024), page dated 2025-09-09, checked 2026-10-26.
• Financial Consumer Agency of Canada — Code of Conduct for Federally Regulated Financial Institutions — Mortgage Prepayment Information, page dated 2025-09-24, checked 2026-10-26.

What to do next

Negotiate your renewal with another lender's written offer in hand. Start at Can your bank do better?: we check your renewal offer against the lenders we work with. Where one of those lenders can do better, we put a written offer in your hand to take back to your bank, subject to lender approval.

If your bank matches the written offer, you stay and pay less; if your bank does not, you can move. If your renewal letter is already a fair offer, we will say so.