Mortgage Renewal Canada 2026: Review Your Offer Before You Respond

Your lender’s renewal letter is a written offer with terms to review. Use this guide to check the rate, term, payment assumptions, penalties, fees, restrictions, and timing before deciding how to respond.

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 mortgage renewal means

When your mortgage term ends, you usually need to renew the remaining balance unless you pay it off in full. The new term sets the rate, payment assumptions, term length, prepayment rules, penalty wording, portability conditions, and other product terms for the next period.

Federal guidance says federally regulated lenders must provide a renewal statement at least 21 days before the current term ends, or notify you if they will not renew. Earlier planning can still help because the 21-day window may be tight if you need documents, clarification, or a lender review.

The renewal review checklist

  1. Read the written offer. Confirm the quoted rate, term, fixed or variable structure, balance, payment frequency, and payment amount.
  2. Review product terms. Check penalty wording, prepayment privileges, portability, restrictions, promotional terms, and cashback or collateral-charge conditions.
  3. Check timing. Confirm the response deadline, rate-hold wording, maturity date, and what happens if you do not respond.
  4. Ask factual questions. Request any unclear rate, fee, penalty, prepayment, portability, or restriction language in writing.
  5. Compare like with like. Do not compare a different term, variable-rate product, refinance, or lender-switch scenario as if it were identical.
  6. Account for costs and approval. A lower advertised rate is not proof that you qualify for it or that it is cheaper after all costs.

Neutral lender message

Use this to ask for written clarification without claiming another rate is guaranteed or that the lender must improve the offer.

Hi, I received my mortgage renewal offer at [RATE]% for a [TERM]. Before I respond, can you please confirm the final rate, payment assumptions, penalty wording, prepayment privileges, portability, fees, restrictions, expiry date, and available renewal options in writing?

Switching lender or comparing another product

Switching can require approval by the new lender and may involve setup, discharge, registration, appraisal, legal, administration, documentation, eligibility, timing, and product-restriction considerations. A different term or variable-rate product can also carry different risks and costs.

Compare actual written alternatives, not just advertised rates. Do not assume that switching, refinancing, changing amortization, increasing borrowing, adding or removing borrowers, or changing mortgage features follows the same process as a same-lender renewal.

Current FairRate Canada scope

FairRate Canada's benchmark-backed free checker and paid benchmark reports currently support Canadian 5-year fixed renewal offers only. Variable-rate offers, shorter fixed terms, refinances, purchase mortgages, and complex restructuring scenarios should not be forced against that reference.

FairRate provides educational market-context and scheduled-payment comparison. It does not arrange mortgages, guarantee approval, guarantee another rate, guarantee savings, or provide legal, financial, brokerage, underwriting, or lender advice.

Frequently asked questions

Should I accept my first mortgage renewal offer?

Do not decide from the rate alone. Review the written rate, term, fixed or variable structure, payment assumptions, penalties, fees, prepayment privileges, portability, restrictions, deadline, and any genuine like-for-like alternatives.

How early should I start checking renewal options?

Start a few months before maturity when possible so you have time to gather your documents, read the written offer, ask factual questions, and understand what happens if you do not respond.

Can I switch lenders at renewal?

Sometimes, but the new lender must approve the application and switching can involve setup, discharge, registration, appraisal, legal, administration, documentation, eligibility, and timing requirements.

What does FairRate Canada currently support?

FairRate Canada’s benchmark-backed free checker and paid benchmark reports currently support Canadian 5-year fixed renewal offers only. Variable-rate offers, shorter fixed terms, and refinancing scenarios should not be forced against that reference.

Important limitation: FairRate Canada is an independent consumer-paid educational comparison and reporting product — not a lender, mortgage broker, mortgage agent, law firm, financial advisor, or mortgage underwriter. FairRate does not arrange mortgages, take applications, approve credit, or sell mortgage inquiries to lenders or brokers. The current benchmark-backed checker and paid benchmark reports support 5-year fixed renewal offers only and use fresh public 5-year fixed comparison context when a usable source is available. Broader Bank of Canada data may be used for contextual purposes. Results are not a lender quote, approval, qualification result, personalized advice, or guarantee of a lower rate or savings. Verify current rates, eligibility, fees, penalties, product terms, and switching costs with the relevant lender and, where appropriate, a licensed mortgage professional or other qualified advisor.