Your mortgage has two clocks (see Term vs amortization). When the shorter one, your term, runs out, you renew: you pick a rate and term for the next part of the trip.
1. Your renewal letter
If your mortgage is with a bank, your lender must send you a renewal statement at least 21 days before your term ends1. It shows the rate and terms they're offering. If they plan to renew you automatically, the letter says so1.
2. Start early
Don't wait for the letter. Start a few months before your term ends, and ask a few lenders and brokers what they'd offer1.
3. Your three choices
- Sign. Accept your lender's offer as it is.
- Negotiate. Ask your lender for a lower rate. They may beat the rate in your letter, especially if you show them a better offer from someone else1.
- Switch. Move your mortgage to another lender with a better offer.
4. Switching lenders
Since November 2024, if you move to another federally regulated lender at renewal without borrowing more or taking longer to pay, you don't have to pass the stress test again. The new lender still checks that you can afford it2.
Switching can come with fees: a discharge or transfer fee from your old lender, an appraisal, and other set-up costs. Ask the new lender if they'll pay some or all of them1.
5. Pick your term and rate again
Fixed or variable, and for how long. It's a fresh choice each time.
6. If you do nothing
Your mortgage may renew automatically, and you might not get the best rate or terms1.
Try it. The renew or switch calculator compares your lender's offer with switching, including the fees.
Renewing soon? The mortgage renewal workbook is a fillable PDF with these chapters, a grid to compare your lender's offer with others, and a worksheet to decide whether to switch or stay.