Who this is for
- Homeowners whose term ends in the next six months
- Anyone unhappy with their current lender's offer or service
- Homeowners who want to add funds, change amortization or consolidate debt at renewal
When to start
Start about 120 days before maturity. Many lenders will hold a rate for 120 days, so you lock in protection without giving up the chance to take a lower rate later.
Switching lenders
A straight switch at renewal, with the same balance and amortization, is not subject to the stress test for insured mortgages and, under OSFI guidance since late 2024, uninsured straight switches are also exempt. Many lenders cover appraisal and legal costs on a switch.
Things to compare beyond rate
Prepayment privileges, penalty calculation method, portability, and whether the mortgage is registered as a collateral charge. A slightly lower rate with a harsh penalty can cost more if you sell or refinance early.
Using renewal to restructure
Renewal is the cheapest time to change your mortgage because there is no penalty. You can add funds for renovations, consolidate higher-interest debt, or change your amortization, though these changes require requalifying.
Worked example (example only, OAC)
- Balance at renewal: $420,000, 20 years remaining
- Bank offer: 5-year fixed at a sample 4.79% → about $2,710/month
- Switch offer: 5-year fixed at a sample 4.29% → about $2,600/month
- Difference: about $110/month, or roughly $6,600 over five years
- Example only, OAC. Rates subject to change.
Frequently asked questions
Will switching lenders hurt my credit?
A switch involves one credit check, which has a small, temporary effect. Shopping through a broker means one application rather than several.
Is there a cost to switch?
Many lenders cover appraisal and standard legal fees for a straight switch. There may be a small discharge fee from your current lender.
Can I renew early?
Many lenders allow early renewal within 120 days of maturity without penalty. Earlier than that usually triggers a penalty or blend-and-extend.
What if my credit has changed since I got my mortgage?
Staying with your current lender may not require requalifying. If you want to switch, we review your situation first so there are no surprises.
Do you charge a fee?
Most standard mortgages with good credit cost you nothing; the lender pays the broker. Private and some alternative mortgages carry a broker fee that is disclosed in writing before you commit.
Serving these cities
Related guides
- Mortgage renewal St. Jacobs
At mortgage renewal in St. Jacobs, you can accept your current lender’s offer, negotiate different terms, or apply to switch lenders. Compare the payment, total borrowing cost, penalties and flexibility—not just the rate
- More guides coming soon
Learn more from CMHC and the Financial Consumer Agency of Canada.
Straight answers, no cost and no obligation for most standard mortgages.
Mortgage Kraft · Affinity Mortgage Solutions Inc., Brokerage #13093 · Jay Shah, Licensed Mortgage Broker, Lic. #M22002236 · Rates and examples OAC, subject to change. Not financial advice.