Mortgage Renewal Advice in Ontario — Renewing Your Mortgage, Or Not

Most Canadian homeowners renew their mortgage the same way they renewed the last one — they receive a notice from their lender, they sign it, and they move on. That process costs more than it should, more often than most people realize. Your lender is not obligated to give you their best rate at renewal. They are obligated to give you a rate. Those are two very different things.

Most Canadian homeowners renew their mortgage the same way they renewed the last one — they receive a notice from their lender, they sign it, and they move on. That process costs more than it should, more often than most people realize. Your lender is not obligated to give you their best rate at renewal. They are obligated to give you a rate. Those are two very different things.

Mortgage Renewal Advice in Ontario — Renewing Your Mortgage, Or Not

What you need to know before you sign your renewal

Your lender's first offer is their opening position — not their best one

Lenders send renewal offers weeks or months in advance knowing that most borrowers will sign without shopping. The posted rate on that notice reflects what the lender believes they can get — not what the market will bear. William Chan, Mortgage Agent Level 2 (FSRA Lic. #M21003034) through MortgageBroker.ca, accesses over 50 lenders to benchmark what you are actually being offered against what is available.

Renewal is the lowest-friction moment to switch lenders

At renewal there is no prepayment penalty — the term has ended and you are free to move. As of November 2024, OSFI removed the stress test requirement for straight switches at renewal, meaning borrowers can move to a new lender without requalifying at a higher rate as long as the mortgage size and amortization remain unchanged. Switching lenders at renewal costs nothing beyond the administrative steps, which a broker handles. One exception worth knowing: if your mortgage is registered as a collateral charge, some lenders may require a discharge and re-registration before a switch can proceed — a step that adds time but rarely changes the outcome. That window closes the moment you sign.

Fixed or variable — the decision looks different at renewal than it did at purchase

The Bank of Canada's rate direction, your remaining amortization, your income stability, and your financial plan may all have changed since your last term. The decision between fixed and variable deserves a fresh analysis at every renewal, not a default to whatever you chose before.

Your amortization clock is still running — renewal is a chance to reset it deliberately

Most borrowers renew at the same amortization remaining without thinking about whether accelerating or extending makes sense given where their finances are today. Shortening the amortization increases your payment but reduces total interest paid over the life of the mortgage. Extending it does the opposite — lower payments, more interest over time. A renewal conversation is the right time to make that call intentionally.



Sometimes staying makes sense — but that decision should be made, not defaulted into

There are situations where your existing lender offers a genuinely competitive rate, where the relationship has value, or where switching creates more friction than it saves. The point is not to always switch — it is to always compare before you sign.

This is where we come in

Renewal is one of the highest-leverage moments in a borrower's financial life — and one of the most consistently underused. Independent mortgage advice through MortgageBroker.ca means the renewal conversation starts with the full market picture, not just what your lender chose to put in the envelope.

Ready When You Are

The renewal window is time-sensitive. The earlier the conversation starts — ideally 90 to 120 days before your maturity date — the more options are available. Starting early also allows a rate hold to be secured — locking in a rate for up to 120 days while the comparison process continues, protecting against rate increases before the maturity date arrives. One conversation is usually enough to know whether what your lender is offering is worth signing.