Mortgage renewal is the single best opportunity to improve your mortgage terms—yet most Canadians simply sign the lender's renewal letter without negotiating. In 2026, with rates having normalized from their peaks, renewal strategy matters more than ever.
When Renewal Planning Starts
| Time Before Renewal | Action |
|---|---|
| 120 days | Start rate shopping |
| 90 days | Get pre-approvals from other lenders |
| 60-90 days | Receive renewal offer from current lender |
| 30-60 days | Negotiate or commit to switch |
| 30 days | Finalize switch paperwork (if changing) |
| 0 days | Renewal effective |
Key insight: Lenders send renewal offers 30-90 days before expiry. Their initial offer is rarely their best.
Start Your Renewal Early
Get renewal quotes today and find out what rate you actually qualify for—then use it to negotiate.
The Renewal Letter: What It Really Means
Reality: The rate in your renewal letter is almost never the best rate available—even from the same lender.
Renewal Strategy: Stay vs. Switch
Staying with Your Current Lender
Pros:
- Simplest process—just sign the renewal
- No new application or qualification
- Keep existing prepayment privileges
- Relationship continuity
Cons:
- May accept inferior rate
- Miss better products elsewhere
- No stress test (can renew even if wouldn't qualify today)
Switching to a New Lender
Pros:
- Access to better rates
- Fresh terms and features
- Competitive offers
- "New customer" incentives
Cons:
- Must qualify under stress test
- Legal fees ($500-$1,500, often rebated)
- Paperwork and time
- Potential appraisal requirement
Negotiation Tactics That Work
Step 1: Get Competing Offers
Before your renewal date:
- Get pre-approved with a broker (access to 30+ lenders)
- Check rates at other major banks
- Know what rate you actually qualify for
Step 2: Call Your Current Lender
Armed with competing offers:
What to say:
"I've received my renewal offer at [X%], but I've been pre-approved at [Y%] with [lender]. Can you match or beat that rate?"
Step 3: Negotiate Beyond Rate
| Feature | Negotiable? | Value |
|---|---|---|
| Interest rate | Yes | Major savings |
| Prepayment privileges | Sometimes | Flexibility |
| Portability | Usually fixed | Moving protection |
| Cash back | Sometimes | Immediate benefit |
| Loyalty discount | Yes | Additional savings |
Step 4: Get It in Writing
Any rate match must be documented. Verbal promises mean nothing.
2026 Renewal Considerations
Rate Environment
Variable Rate at Renewal
If you're currently in variable:
- Rate already reflects current environment
- No payment shock at renewal
- Consider: stay variable or lock in fixed?
The True Cost of Not Shopping
Scenario: $400,000 mortgage, 5-year renewal
Cost of accepting 5.25% vs. 4.50%: Almost $15,000 over 5 years.
Special Renewal Situations
Your Home Value Dropped
- Staying with current lender may be easier (no new appraisal)
- Switching may require appraisal that reveals lower LTV
- Some lenders have minimum equity requirements
Your Income Changed
- Staying with current lender: No stress test required
- Switching lenders: Must pass stress test at new lender
If you wouldn't qualify today, staying may be necessary.
You Want to Access Equity
- Renewal can be combined with refinancing (access up to 80% LTV)
- Adding HELOC
- Blend-and-extend for additional funds
FAQ
Q: Can I renew early?
A: Many lenders allow early renewal, often with a blend-and-extend. This can lock in rates before increases.
Q: What happens if I don't renew?
A: Most mortgages convert to month-to-month at a posted rate (much higher). Always renew before expiry.
Q: Is there a fee to switch lenders at renewal?
A: Usually $500-$1,500 in legal fees, often rebated by the new lender. Ask about switch incentives.
Q: Do I need to provide all my documents again to switch?
A: Yes—switching requires a full application. But the process is streamlined for switches.
Q: What if my credit score dropped since I got my mortgage?
A: May affect ability to switch or rate offered. Staying with current lender may be easier.
What's Next
Don't leave money on the table at renewal. Start your renewal process early with our team and we'll negotiate the best rate whether you stay or switch.
Maximize Your Renewal
Start early and get competing offers. We'll negotiate the best rate for you.
