mortgage renewal canada

✓ Updatedtoday• 16 views

Information as of Aug 3, 2025

Overview of Mortgage Renewal in Canada

Mortgage renewal in Canada occurs at the end of a mortgage term, requiring borrowers to sign a new mortgage contract to continue repaying their home loan. Most mortgages are structured with multiple terms (e.g., a 25-year amortization split into five 5-year terms), and you must renew at the end of each term unless the mortgage is fully paid off.

Renewal is more than just agreeing to a new interest rate; it is an opportunity to reassess your mortgage conditions, including payment frequency, amortization period, term length, and interest rate type (fixed or variable). Borrowers can renew with their current lender or switch to a new lender if desired.

Key Mortgage Renewal Details

Aspect	Details
When to start	Start renewal process 3 to 6 months before the term ends. Some lenders allow renewal up to 6 months early without penalty.
Renewal statement	Federally regulated lenders must send a renewal statement at least 21 days before the term ends, including balance, rate, term, payment frequency, and fees.
Automatic renewal	Some lenders auto-renew mortgages if no response is given, often at higher rates or shorter terms—this limits negotiation power.
Negotiation	Borrowers should negotiate rates and terms, citing competing offers if available, to avoid paying higher automatic renewal rates.
Options at renewal	Change payment frequency (weekly, biweekly, monthly), term length, amortization period, or switch fixed/variable rate.

Major Canadian Banks: Mortgage Renewal Highlights

Bank	Renewal Process	Early Renewal Window	Features & Services
RBC	No requalification; sign renewal online or in person; advisors available for help	Up to 6 months	Automatic renewal to open term if no action; advisors assist with options and refinancing.
Scotiabank	Personalized renewal options; advisors help compare rates and terms	Up to 6 months	Flexible payment options; can consolidate debt; early renewal to lock in rates before increase.
BMO	Renew online or via app 180 days before term end; personalized rates available	Up to 6 months	Flexible payment schedules; option to increase payments or make lump sum; Take a Break® program available.
TD Bank	Digital renewal via EasyWeb or app; compare terms and rates online	Up to 4 months	Encouraged early start; adjust term and payments; easy acceptance of renewal agreement online.
National Bank	Advises starting 6 months before; expert advice available	Up to 6 months	Appointment with experts to find advantageous rates; early renewal encouraged.

Practical Tips for Mortgage Renewal

Start early: Begin reviewing your mortgage about 4-6 months before the term ends to explore current market rates and negotiate better terms.
Compare rates: Use the renewal opportunity to shop around with other lenders or mortgage brokers to get competitive offers. Present these offers to your current lender to negotiate better rates.
Review your financial situation: Consider any changes in income, expenses, or plans (e.g., renovations, selling home) that might affect your mortgage needs.
Choose payment frequency and term wisely: Adjusting payment frequency (weekly, biweekly, monthly) can help with budgeting or paying off the mortgage faster.
Avoid automatic renewal: If you ignore renewal offers, your lender may auto-renew at less favorable terms, so actively engage in the process.

Summary

Mortgage renewal is a critical financial event in Canada that recurs every few years depending on your mortgage term. It is essential to prepare ahead by reviewing your financial goals, comparing rates, and negotiating with lenders. Major Canadian banks provide tools and advisors to assist with renewal, typically allowing renewals up to 4-6 months before term expiry without penalty. Avoid automatic renewals to ensure you secure the best possible mortgage conditions.

Next Steps

Mark your mortgage renewal date and start reviewing your options 4-6 months in advance.
Gather current mortgage offers from multiple lenders or brokers for negotiation leverage.
Contact your current lender’s mortgage advisor or bank branch to discuss personalized renewal options.
Consider using a platform like theratefinder to compare competitive mortgage renewal rates and streamline your application process.
Finalize and sign your renewal agreement before the term end to avoid automatic renewal at potentially higher rates.

This proactive approach ensures your mortgage renewal aligns with your financial goals and current market conditions.