Mortgage Renewal Guide: How to Get the Best Rate

The Renewal Wave — Why This Matters Now

An estimated 1.2 million Canadian mortgages are up for renewal in 2025–2027. Many of these were locked in at 2–3% during the pandemic. Renewing at today's rates (4.5–5%) means significantly higher payments.

Start Shopping 4 Months Early

Most lenders will let you lock in a rate 120 days before your maturity date. This protects you if rates rise before your renewal. Don't wait until the last minute.

Never Accept Your Lender's First Offer

Your current lender will send you a renewal offer — often by mail or email. This is almost never their best rate. They're counting on inertia. Here's what to do:

1. Get 2–3 competing offers (your bank, a credit union, a mortgage broker)
2. Go back to your current lender with the best competing offer
3. Ask them to match or beat it
4. Switch if they won't — there is no penalty to switch at renewal

Refinancing at Renewal: The Best Time

Renewal is the perfect time to refinance — you can increase your mortgage, change your amortization, or access equity with no break penalty. Lenders can lend up to 80% of your home's current value.

Fixed vs Variable at Renewal

With BoC holding at 2.25% and possible rate cuts in late 2026, variable rates are attractively priced. However, if your budget is tight, locking in a fixed rate gives payment certainty for your next term.

⚠️ This article is for informational purposes only. Not financial advice. Canada Mortgage Rates is not a licensed mortgage broker. Always verify with a licensed professional.