Ontario renewals in 2026 hinge on three things: GTA pricing spreads, Ontario LTT rules, and which lenders will switch you for zero out-of-pocket. The mistake most Canadians make: Assuming Toronto Land Transfer Tax applies to a renewal. It does not. Renewals and straight switches are LTT-exempt province-wide. What changed in 2026 (and why it matters now) Ontario renewals are LTT-exempt — both provincial and Toronto municipal. OSFI B-20 stress test applies on switch, not on stay. Insured (≤$1.5M, ≤20% down history) typically gets the sharpest renewal pricing. Your mortgage renewal is one of the best opportunities to improve your financing terms. Yet most Ontario homeowners simply sign their lender's renewal offer without shopping around—potentially leaving thousands on the table. This guide covers strategies for getting the best renewal rate. The Renewal Opportunity Mortgage renewal is one of the best opportunities to improve your financing terms. Yet many Ontario homeowners simply sign their lender's renewal offer without shopping around, potentially leaving thousands of dollars on the table. Approaching renewal strategically can reduce your rate, adjust your terms, and improve your overall financial position. When to Start Planning Begin reviewing renewal options 120-180 days before your maturity date. This provides time to shop without pressure while potentially locking in favorable rates. Early Rate Holds Many lenders offer 120-day rate holds, protecting you from increases while you evaluate options. Starting early gives you this protection without commitment. Evaluating Your Current Lender's Offer Your lender's initial renewal offer is typically their starting point, not their best offer. Posted rates often leave room for negotiation. Negotiation Leverage Armed with competing offers, you can often negotiate better terms with your current lender. They may match or approach competitors' rates to retain your business. Switching Lenders Switching at renewal is free—no prepayment penalties apply when your term ends. You only pay legal and potentially appraisal fees, often covered by new lender incentives. When Switching Makes Sense Switch when rate differences are significant (0.15%+ typically), when you need different mortgage features, or when your current lender won't negotiate competitively. Renewal vs. Refinance Renewal maintains your current mortgage amount; refinancing accesses additional equity. If you need funds for renovations or debt consolidation, renewal may transition into refinancing with different considerations. Fixed vs. Variable Decision Renewal is the perfect time to reconsider your rate type. Evaluate current spreads between fixed and variable, interest rate forecasts, and your risk tolerance when choosing your next term. Term Length Strategy While 5-year terms are most common, shorter terms may make sense if you anticipate changes—moving, paying off the mortgage early, or expecting rate decreases. What's Next Don't auto-renew without shopping. Don't wait until the last minute to explore options. And don't overlook the value of features like prepayment privileges when comparing offers. Start early and work with a mortgage broker who can show you all available options. Don't auto-renew. Get a free renewal review. We shop 50+ lenders in 24 hours and show you exactly how much you can save vs your bank's renewal offer. Run the Renewal Calculator Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions Do I pay Ontario Land Transfer Tax when I switch lenders? No. Renewals and straight switches are LTT-exempt in Ontario. Does Toronto MLTT apply at renewal? No. MLTT only applies on a change of ownership. Can I refinance and switch at the same time? Yes — but that triggers full re-qualification including stress test.
