What mortgage renewal means
A mortgage term lasts for a specific period. Unless the balance is repaid, a new agreement is normally needed when that term ends. The renewal terms can affect future payments, interest costs and flexibility.
Review the complete offer
- The new interest rate and whether it is fixed or variable
- The length of the new term
- The regular payment amount and payment frequency
- The remaining amortization period
- Prepayment privileges and possible penalties
- Fees or conditions that may apply if you switch lenders
Timing matters
For mortgages with federally regulated financial institutions, renewal information is generally provided before the existing term ends. Starting early gives you time to understand the offer, gather questions and consider whether the current structure still fits your needs.
Switching lenders
A new lender must approve the application. Switching may involve qualification, documentation, discharge or transfer costs and property-related requirements. A lower headline rate is not the only consideration.
Questions worth asking
- Can the offered rate be improved?
- Would a shorter or longer term change flexibility or cost?
- What happens if the mortgage is paid out before the new term ends?
- Are fees covered when switching, and what conditions apply?
- How does the new payment affect total interest and remaining amortization?
For current federal consumer information, consult the Financial Consumer Agency of Canada. Renewal options and approval are determined by each lender.