A practical renewal timeline for comparing rates, payments, lender terms, switching costs, debt consolidation and equity options before signing.
Four points to remember
- Begin reviewing the mortgage about 120 days before maturity.
- The renewal letter is an offer, not necessarily the best available structure.
- An uninsured straight switch may receive different stress-test treatment when the loan amount and amortization do not increase.
- Compare penalties, privileges and total cost—not only the rate.
Start 120 days before maturity
Collect the current balance, maturity date, remaining amortization, charge type and renewal offer. Starting early creates time to correct credit issues, document income, compare lenders and decide whether the goal is a simple renewal or a refinance.
- 120–90 days: review goals and documents
- 90–60 days: compare structures and lenders
- 60–30 days: complete approval and legal requirements
- Before maturity: sign only after reviewing the final terms
Decide whether this is a renewal, switch or refinance
Staying with the current lender is a renewal. Moving the same balance and remaining amortization to another lender may be a straight switch. Increasing the amount, extending amortization or taking out equity is usually a refinance and involves a fuller qualification review.
- Renew: same lender
- Straight switch: new lender, same balance and amortization
- Refinance: increase funds or materially change the loan
- Blend-and-extend: change before maturity under the current lender’s rules
Compare the complete offer
A small rate difference matters, but a mortgage with restrictive prepayment terms, a costly penalty calculation or a collateral charge may cost more later. Compare the payment, total term interest, remaining balance, prepayment privileges, portability and discharge costs.
- Contract rate and effective payment
- Fixed or variable structure
- Prepayment privilege and penalty method
- Portability and charge registration
- Cash-back clawbacks or bundled accounts
Use renewal to repair cash flow carefully
Renewal can be a logical time to evaluate consolidating high-interest debt or accessing equity for a defined purpose. However, converting short-term unsecured debt into long-term debt secured by the home can increase total interest and put the property at risk if the new payments are not maintained.
- List every debt, balance, rate and payment
- Compare the current weighted payment with the proposed mortgage
- Include fees and any additional years of repayment
- Create a plan that prevents the balances from returning
Follow a clean renewal decision process
Compare at least a base case, a lower-payment case and a faster-payoff case. Then select the structure that fits both the current budget and likely changes during the term.
- Step 1: calculate the payment at realistic rates
- Step 2: request the lender’s best written offer
- Step 3: compare switching and refinancing options
- Step 4: check documents, appraisal and legal costs
- Step 5: sign before the maturity deadline
Frequently asked questions
Do I have to renew with my current bank?
No. You may apply to switch to another lender, although the new lender must approve the application and fees or legal steps may apply.
Does the mortgage stress test apply when switching lenders?
OSFI no longer prescribes the set minimum qualifying rate for an eligible uninsured straight switch between federally regulated lenders when the balance and remaining amortization are not increased. Lenders still underwrite and may use their own criteria.
When should I start shopping for renewal?
Starting about 120 days before maturity gives enough time to compare, document and complete a transfer without last-minute pressure.
Official sources and verification
This guide prioritizes primary information from governments, regulators and CMHC. Mortgage policies change; confirm the rules that apply when you apply.
This guide and its calculators are for general education only—not an approval, commitment, or legal, tax or investment advice. Actual rates, fees, underwriting and product terms vary by lender and application.