Process of choosing new mortgage terms at maturity, either with the current lender or a switch.
Mortgage renewal is the process of entering a new term when the current mortgage term ends and there is still a balance outstanding.
Renewal is one of the most important decision points in a Canadian mortgage. The borrower can keep the current lender, negotiate different terms, switch lenders, or refinance instead.
FCAC says federally regulated financial institutions must provide a renewal statement at least 21 days before the end of the existing term, or notify the borrower 21 days in advance if they will not renew. The statement should show the balance at renewal, the interest rate, payment frequency, term, and applicable charges or fees.
Renewal is also the natural time to reconsider amortization, payment frequency, rate type, portability needs, and whether the current product still fits the household.
| Choice | What usually stays the same | What usually changes |
|---|---|---|
| Mortgage renewal | The mortgage stays with the current lender | The next term, rate, and payment path are reset |
| Mortgage switch | The balance and basic structure usually stay similar | The lender changes |
| Refinance | The property may stay the same | The balance, amortization, equity access, or structure changes materially |
A borrower receives a renewal offer from the current lender and notices the rate is not very competitive. That borrower can negotiate, gather competing quotes, and decide whether staying, switching, or refinancing makes the most sense before the maturity date.
Borrowers sometimes treat the first renewal offer as final. In reality, it is often only a starting point.
Another mistake is assuming renewal is purely about rate. Registration type, fees, prepayment flexibility, payment schedule, and home-equity goals can matter just as much.
Automatic renewal clauses, timing, and switch logistics vary by lender and contract wording. Borrowers with collateral charges or bundled credit products may need more lead time.