Renewing Your Mortgage?
Don’t Sign the First Offer
What your renewal letter has to tell you, how to negotiate or switch lenders, and when the stress test doesn’t apply. A plain-English checklist for Burlington and Hamilton homeowners.
What Your Renewal
Letter Must Tell You
A mortgage term can run anywhere from a few months to five years or longer. Unless you pay off the balance, you renew at the end of each term, and most people renew several times before the mortgage is paid off.
If your mortgage is with a federally regulated lender, such as a bank, it must send you a renewal statement at least 21 days before your term ends. If it isn’t going to renew your mortgage, it must tell you at least 21 days before the end of the term.
The renewal statement has to show:
- the balance remaining on the renewal date
- the interest rate
- the payment frequency
- the term
- any charges or fees that apply
It must also confirm that the rate offered won’t go up before your renewal date.
Start Shopping
Months, Not Days, Before
You don’t have to stay with your current lender. The Financial Consumer Agency of Canada suggests you start comparing a few months before your term ends, by contacting other lenders and mortgage brokers, rather than waiting for the renewal letter.
Give yourself extra time if your mortgage is registered as a collateral charge. Switching may involve fees, and you would have to pay off or move every loan secured by that charge, such as a line of credit or a car loan. Your lender, lawyer or notary can tell you which kind of charge you have.
What is your home worth at renewal time?
Renewal is a good moment to know where you stand. Send us the address and we’ll text you a realistic price range the same day, based on the sales closest to you. Free, with no obligation.
Just curious? See typical values in your area now
Your Lender’s First Rate
Isn’t Always Its Best
You may qualify for a lower rate than the one in your renewal letter. Tell your lender about offers you’ve received from other lenders or mortgage brokers, and keep proof of them on hand, because you may be asked for it.
If your lender is a federally regulated bank, it must offer you products that are appropriate for your circumstances and financial needs, and tell you if it has assessed a product as not appropriate for you. Describe your situation fully, and keep asking questions until you understand the mortgage you’re agreeing to.
Moving Your Mortgage,
and the Stress Test
A new lender has to approve your application, and it may use different criteria than your current lender did.
Before you switch, ask about the costs:
- setup fees with the new lender, which can include discharge, registration, transfer or assignment fees from your current lender
- an appraisal to confirm your home’s value, if one is needed
- other administration fees
Ask whether the new lender will pay some or all of these costs.
If your mortgage is insured, you may have to pay a new mortgage insurance premium if you increase the amount you borrow or extend the amortization. Give the new lender your existing insurance certificate number, which can help you avoid paying the premium twice. You’ll also sign registration documents, and you may need to meet with a lawyer or notary.
Your Renewal
Checklist
- Read the renewal statement: balance, rate, term, payment frequency, fees, and whether it renews automatically.
- Get competing offers from other lenders or a mortgage broker before you negotiate.
- Decide whether your budget allows higher payments, to pay the mortgage off sooner and save on interest.
- Choose your payment frequency, and think about any extra payments you’re likely to make.
- Ask how much you can prepay each year, and what it would cost to break the mortgage early.
- Decide whether you want to consolidate higher-interest debts, which means increasing the amount of your mortgage.
- Check whether you still need any optional life, critical illness, disability or employment insurance.
- Make sure you’re happy with your current lender’s service.
Proposed in
Budget 2026
The federal budget released on 5 November 2026 proposed two measures aimed at mortgage shoppers:
- New regulations so the Bank of Canada publishes information on insured mortgage rates, to make it easier to compare and shop for the best available rate.
- A consultation on making prepayment penalties on insured mortgages more transparent and easier to compare.
Both are proposals, not yet in force. The same budget also proposed extending the foreign buyer ban to 2029.
Renewing, or
Rethinking the Home?
We’re REALTORS®, not mortgage advisors, so your lender or a mortgage broker is the right call on the rate itself. But renewal is a natural point to ask bigger questions: does the home still fit, what is it worth today, and what would a move actually cost?
That’s where we can help. Run your renewal numbers in our mortgage calculator, see what it costs to sell, or check the latest Burlington and Hamilton market numbers.
Mortgage Renewal,
Answered
How early will my lender send my mortgage renewal offer?
If your lender is federally regulated, such as a bank, it must send you a renewal statement at least 21 days before your term ends, and it must tell you at least 21 days before the end of the term if it won’t renew your mortgage. The Financial Consumer Agency of Canada suggests you start shopping around a few months before your term ends rather than waiting for the letter.
Do I have to renew with my current lender?
No. You can move your mortgage to another lender if its terms suit you better. The new lender will need to approve your application and may use different criteria. There can be costs to switch, such as discharge, registration, transfer or assignment fees, an appraisal and administration fees, so ask whether the new lender will cover some or all of them.
Do I have to pass the stress test again if I switch lenders at renewal?
Not necessarily. OSFI, the federal regulator, does not expect lenders to apply the minimum qualifying rate when a borrower switches an uninsured mortgage from one federally regulated lender to another at renewal, with no increase to the loan amount or the amortization period.
What happens if I ignore my renewal letter?
Your mortgage may renew automatically, which means you may not get the best rate and conditions available. If your lender plans to renew your mortgage automatically, the renewal statement will say so.
Should I extend my amortization to lower my payments at renewal?
Think twice first. A longer amortization lowers each payment, but the Financial Consumer Agency of Canada warns that the extra interest can add up to thousands or tens of thousands of dollars. Ask your lender to show you the total cost of each option.
Our
Sources
Every rule on this page comes from these official sources, read in full on 12 November 2026:
- Financial Consumer Agency of Canada, “Renewing your mortgage” (canada.ca)
- Office of the Superintendent of Financial Institutions (OSFI), “Minimum qualifying rate for uninsured mortgages” (osfi-bsif.gc.ca)
- Government of Canada, Budget 2026, Chapter 3: “A more affordable life” (budget.canada.ca)
Published 12 November 2026. We are REALTORS®, not mortgage, legal or financial advisors. Rules and guidance change. Confirm the terms of your own mortgage with your lender or a licensed mortgage professional before you sign.
Thinking About
Your Next Move?
If your renewal has you wondering whether to stay, sell or move, we’ll give you a realistic price range for your home and walk you through the numbers. No pressure, no obligation.
Laura Brown & Kristina Kritikos · Royal LePage Burloak Real Estate Services · 905-634-7755