What is Renewal in Canadian mortgages?
Renegotiating a mortgage at the end of its term. Borrowers can change lenders, rates, and terms without penalty. No re-qualification required if staying with same lender (for most products).
Why Renewal matters
Renewal is when a client is free to move to a better rate without a penalty, so it is both a retention risk and a business opportunity. With roughly 2.2 million Canadian mortgages renewing across 2025 and 2026, many at higher payments, renewals are one of the biggest sources of repeat business for brokers.
Renewal example
Worked example
2025-2026 renewal wave: ~2.2M Canadians renewing mortgages taken at 2020-2021 pandemic-era low rates, facing significantly higher payments.
How brokers use Renewal
- Record the maturity date on every funded deal and set a reminder about 120 days before it.
- Lenders often send renewal offers 90 to 120 days ahead. Check rates before the offer so the client has something to compare.
- Since November 2024, an uninsured straight switch to a federally regulated lender at renewal does not need the stress test.
- A renewal is also the time to review amortization, prepayment privileges and whether the client should consider a refinance.
More questions about Renewal
Can I switch lenders at renewal?
Yes, at maturity you can switch lenders without a prepayment penalty. A straight switch of an uninsured mortgage to another federally regulated lender does not require the stress test.
How early should I look at renewal rates?
About 120 days before maturity is a common starting point. Many lenders allow a rate hold from around that time.