Review Your Mortgage Renewal Before You Sign

A renewal decision is more than a quoted percentage. Review the rate, term, payment, penalties, prepayment rules, portability, fees, switching friction, and written conditions before accepting.

Already received a renewal offer from your lender?

Check the rate against current Canadian mortgage benchmarks before you sign. FairRate is paid by you, not by lenders, and does not sell your information to brokers.

Most borrowers compare only after they have already signed. Free check first; paid report options after the check: Rate Fairness Report CA$24 · Full Renewal Decision Report CA$49. No broker calls. No data sold.

What a renewal offer does — and does not — tell you

A renewal letter tells you what one lender is offering under the terms shown in that offer. It does not, by itself, prove that the offer is fair, unfair, the lowest available rate, or the best overall mortgage for your circumstances.

Review the entire product. A lower headline rate can come with different penalties, prepayment privileges, portability, fees, transfer requirements, or other restrictions. An advertised rate is also not proof that you qualify for it.

A before-you-sign renewal checklist

  • Rate and structure: Confirm the exact rate, fixed or variable structure, term length, and when the offer expires.
  • Payment and amortization: Confirm the scheduled payment and the remaining amortization used to calculate it.
  • Prepayment rules: Ask about lump-sum privileges, payment increases, and any restrictions.
  • Early-break penalty: Ask how the penalty is calculated and request the applicable wording in writing.
  • Portability: Ask whether the mortgage can move with you and under what conditions.
  • Fees and conditions: Check for discharge, transfer, appraisal, legal or notarial, title-insurance, administration, cashback, or promotional conditions that could matter.
  • Alternatives: If you compare another product or lender, use like-for-like assumptions and include all switching friction.

How to ask your lender for a review

Ask the lender to review the quoted rate and explain whether another renewal option is available. You can also ask for the final rate, term, penalty language, prepayment privileges, portability, fees, and material restrictions in writing.

Avoid claiming that another lender has guaranteed you a lower rate unless you have an actual written offer. FairRate does not assume that a generic public rate is available to a particular borrower.

Comparing another lender

A switch may be worth investigating when the expected benefit still looks meaningful after all relevant costs, qualification requirements, documentation, timing, and product differences are considered. Staying may be preferable when those factors outweigh the apparent rate difference.

Do not assume a straight switch is automatically free, automatically exempt from every qualification requirement, or automatically available. Current rules and lender requirements can change, and the details of the transaction matter.

Stress-test and qualification questions

Mortgage qualification rules are high-stakes and can change. A same-lender renewal, a lender switch, a refinance, increased borrowing, an amortization change, and other material changes should not be treated as the same transaction.

Before relying on a generic online rule, verify the current requirements for your exact transaction with the relevant lender and, where appropriate, a licensed mortgage professional. FairRate does not provide mortgage approval or underwriting.

What FairRate currently supports

FairRate Canada's benchmark-backed free checker and paid benchmark reports currently support 5-year fixed renewal offers only. The comparison uses fresh public 5-year fixed market context when a usable source is available and fails closed when supported fresh context cannot be verified.

Province is used for contextual notes; it does not create province-specific benchmark pricing. The comparison is educational context, not a lender quote, approval, personalized advice, or guarantee of savings.

Frequently asked questions

What should I review before accepting a mortgage renewal offer?

Review the quoted rate, term, fixed or variable structure, remaining amortization, payment amount, prepayment privileges, portability, penalty wording, fees, and any conditions that could affect a later switch or early payout. Compare like-for-like products rather than the headline rate alone.

Is the first renewal offer automatically the best available offer?

No general rule proves that an initial renewal offer is either the best or not the best option available to a particular borrower. Ask the lender whether another renewal option is available and request material terms in writing before deciding.

Can I compare another lender at renewal?

You can investigate alternatives, but eligibility, documentation, qualification rules, timing, legal or notarial work, discharge charges, appraisal requirements, product restrictions, and other switching costs can vary. Verify the current requirements and total costs for your exact situation before assuming a switch is free or available.

Does the mortgage stress test apply at renewal?

The answer can depend on the transaction and current qualification rules. Same-lender renewals, switches, refinances, increased borrowing, amortization changes, and other material changes should not be treated as identical. Verify the current requirements with the relevant lender and, where appropriate, a licensed mortgage professional.

How early should I start reviewing a renewal?

Start early enough to read the offer, ask questions, obtain written alternatives if you choose, and understand any transfer or documentation requirements before maturity. Exact lender timelines and rate-hold periods vary, so confirm them directly rather than assuming a universal 90-day or 120-day rule.