The short version
- Start 4 to 6 months before your renewal date.
- Do not just sign the renewal letter. It is often not the best rate available.
- In most cases you no longer need to pass the stress test to switch lenders for a straight switch.
- Compare the whole term (prepayment options, penalties, portability), not just the rate.
Why renewal is your best chance to save
At renewal you can move to another lender without paying a penalty. Many homeowners simply sign the offer their bank sends, and that offer is often not the best rate available. Even a small rate difference adds up to thousands of dollars over a five-year term.
Switching lenders is easier now
Since November 21, 2024, federally regulated lenders no longer have to stress test uninsured borrowers who make a "straight switch" at renewal. A straight switch means moving to a new lender with the same loan amount and no longer amortization (OSFI). Insured borrowers were already exempt. Up to $3,000 can be added to the balance to cover switching costs, but you cannot take equity out. The new lender still reviews your income and credit.
The checklist
4 to 6 months before
- Find your maturity date, current balance and remaining amortization on your latest mortgage statement.
- Write down what has changed: income, job, debts, family, or plans to move or renovate.
- Decide what matters most: lowest payment, paying it off faster, flexibility, or access to equity.
- Ask a broker to compare offers. Many lenders hold a rate for up to 120 days.
2 to 3 months before
- Gather documents: ID, a recent pay stub and employment letter (or two years of tax documents if self-employed), your mortgage statement and your property tax bill.
- Compare fixed and variable rates and different term lengths.
- Compare the details: prepayment privileges, how the penalty is calculated, portability and whether you can blend and extend.
- Check for switching costs. Many lenders cover the legal and appraisal costs on a switch.
When your renewal letter arrives
- Compare your lender's offer to the best alternative you have.
- Ask your lender to match it. Sometimes they will.
- Choose, sign, and set a calendar reminder for six months before your next renewal.
Thinking about refinancing instead?
If you want to consolidate debt, renovate or take out equity, it is a refinance, not a straight switch, so the usual qualification rules apply. Renewal is often the cheapest time to refinance because there is no penalty for breaking your mortgage. Use my payment calculator to compare scenarios.
Renewing in the next six months?
Send me your renewal letter or your current details. I will compare it with options from many lenders and show you the difference in plain numbers. On most standard mortgages, there is no cost to you.
This guide is general information, not financial, legal or tax advice. Programs, rates and rules change; confirm the details for your situation before you act. Mortgage information is provided by Ashraful Khan, Mortgage Broker, Lic. #M22000883, Mortgage Alliance Inc., FSRA Licence #10530. Real estate information is provided by Ashraful Khan, Sales Representative, Royal LePage Ignite Realty, Brokerage, Independently Owned and Operated.