Can You Be Denied a Mortgage Renewal in Canada?

Short answer: yes, your lender can decline to renew your mortgage at maturity. In practice it is uncommon when payments are current — but it happens often enough that you should never treat a renewal as automatic.

When a lender refuses to renew

• Repeated arrears. Chronic late payments during the term are the single biggest trigger.
• Property tax arrears or condo fee arrears. These rank ahead of the mortgage and lenders take them seriously.
• Property condition or insurability problems. Fire damage, an unpermitted conversion or a cancelled home insurance policy.
• The lender exiting a product. Alternative and private lenders sometimes wind down a portfolio and simply do not renew anyone in it.
• A private or B-lender term reaching its natural end. These are usually 1–2 year terms written with the expectation you move on.
• Fraud or misrepresentation discovered during the term.

Note what is not on the list: a lower credit score, a job change, or a drop in your property value. None of those trigger a refusal on their own if you stay with your existing lender and keep paying.

What happens if you are not renewed

Your lender must give you notice — federally regulated lenders provide a renewal statement at least 21 days before maturity. If they will not renew, the balance becomes due on the maturity date and you need to arrange a new mortgage or repay it.

Your realistic options:

1. Switch to a new A lender. If your credit and income still qualify, a straight switch is normally the cheapest path. Since 2024 OSFI does not require the stress test on a straight switch where the balance and amortization do not increase.
2. Move to a B lender. Higher rate plus a lender fee (commonly around 1% of the mortgage), qualifying is more flexible, and terms run 1–3 years.
3. Private financing. Equity-driven to roughly 75–80% loan-to-value, with fees and higher rates. Treat it as a 12-month bridge with an exit plan.
4. Sell. The last resort, but far better on your own timeline than on a lender's.

The 120-day playbook

• Day 120: request your payout balance and maturity date in writing. Get a rate hold from at least one alternative lender.
• Day 90: compare your lender's renewal offer with the competing approval. Push back with the written offer in hand.
• Day 60: if switching, get the application in — a switch typically takes three to four weeks to fund.
• Day 30: confirm the discharge and funding dates with both lenders so you never fall onto an open holdover rate.

Protecting yourself during the term

Keep payments current, keep property taxes paid, keep home insurance active, and avoid maxing revolving credit in the year before maturity. Those four habits keep every renewal door open.

Start with our renewal calculator to see what a better rate is worth on your balance.