Mortgage renewal is the single best opportunity to improve your mortgage terms—yet most Canadians simply sign the lender's renewal letter without negotiating. In 2026, with rates having normalized from their peaks, renewal strategy matters more than ever.
When Renewal Planning Starts
| Time Before Renewal | Action | --------------------- | -------- | 120 days | Start rate shopping | 90 days | Get pre-approvals from other lenders | 60-90 days | Receive renewal offer from current lender | 30-60 days | Negotiate or commit to switch | 30 days | Finalize switch paperwork (if changing) | 0 days | Renewal effective | Key insight: Lenders send renewal offers 30-90 days before expiry. Their initial offer is rarely their best.
Start Your Renewal EarlyGet renewal quotes today and find out what rate you actually qualify for—then use it to negotiate. The Renewal Letter: What It Really MeansWhen you receive your lender's renewal letter: |
What They Offer | What It Actually Means | ----------------- | ------------------------ | "Your new rate" | Their starting negotiation point | "Just sign and return" | They hope you won't shop around | "Easy renewal" | They profit from your inaction | Posted rate | 0.5-1.5% above competitive rates | Reality: The rate in your renewal letter is almost never the best rate available—even from the same lender.
Renewal Strategy: Stay vs. SwitchStaying with Your Current LenderPros:
Cons:
Switching to a New LenderPros:
Cons:
Negotiation Tactics That WorkStep 1: Get Competing OffersBefore your renewal date:
Step 2: Call Your Current LenderArmed with competing offers: What to say: Step 3: Negotiate Beyond Rate |
Feature | Negotiable? | Value | --------- | ------------- | ------- | Interest rate | Yes | Major savings | Prepayment privileges | Sometimes | Flexibility | Portability | Usually fixed | Moving protection | Cash back | Sometimes | Immediate benefit | Loyalty discount | Yes | Additional savings |
Step 4: Get It in WritingAny rate match must be documented. Verbal promises mean nothing. 2026 Renewal ConsiderationsRate EnvironmentWith rates having moderated from 2022-2023 peaks: |
Your Expiring Rate | Current Market | Strategy | ------------------- | ---------------- | ---------- | Lower (2-3%) | Higher (4-5%) | Lock in best available, consider variable | Same (4-5%) | Similar (4-5%) | Shop aggressively for best rate | Higher (5-6%) | Lower (4-5%) | Celebrate and lock in savings |
Variable Rate at RenewalIf you're currently in variable:
The True Cost of Not ShoppingScenario: $400,000 mortgage, 5-year renewal |
Rate | Monthly Payment | 5-Year Interest Cost |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4.50% | $2,207 | $87,115 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4.75% | $2,261 | $91,907 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5.00% | $2,315 | $96,785 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5.25% | $2,370 | $101,750 |
Cost of accepting 5.25% vs. 4.50%: Almost $15,000 over 5 years.
Special Renewal Situations
Your Home Value Dropped
If your property value declined:
- Staying with current lender may be easier (no new appraisal)
- Switching may require appraisal that reveals lower LTV
- Some lenders have minimum equity requirements
Your Income Changed
Under current rules:
- Staying with current lender: No stress test required
- Switching lenders: Must pass stress test at new lender
If you wouldn't qualify today, staying may be necessary.
You Want to Access Equity
Renewal can be combined with:
- Refinancing (access up to 80% LTV)
- Adding HELOC
- Blend-and-extend for additional funds
FAQ
Q: Can I renew early?
A: Many lenders allow early renewal, often with a blend-and-extend. This can lock in rates before increases.
Q: What happens if I don't renew?
A: Most mortgages convert to month-to-month at a posted rate (much higher). Always renew before expiry.
Q: Is there a fee to switch lenders at renewal?
A: Usually $500-$1,500 in legal fees, often rebated by the new lender. Ask about switch incentives.
Q: Do I need to provide all my documents again to switch?
A: Yes—switching requires a full application. But the process is streamlined for switches.
Q: What if my credit score dropped since I got my mortgage?
A: May affect ability to switch or rate offered. Staying with current lender may be easier.
What's Next
Don't leave money on the table at renewal. Start your renewal process early with our team and we'll negotiate the best rate whether you stay or switch.
Maximize Your Renewal
Start early and get competing offers. We'll negotiate the best rate for you.
