What the letter should help you verify
A renewal letter may contain a proposed rate, term, payment, balance, maturity date, deadline, and acceptance instructions. Do not assume every lender letter contains the same fields or that a missing detail is unimportant. Request clarification and written terms where needed.
Eight items to review
Quoted rate
Confirm the exact percentage and whether the mortgage is fixed or variable.
Term
Confirm the exact term rather than assuming the highlighted option is the only available renewal choice.
Payment assumptions
Check the scheduled payment, remaining amortization, payment frequency, and balance used.
Penalty wording
Ask how an early-break penalty is calculated and request the applicable wording in writing.
Prepayment privileges
Review lump-sum privileges, payment-increase options, and restrictions.
Portability
Ask whether the mortgage can move with you and under what conditions.
Fees and conditions
Check discharge, transfer, appraisal, legal or notarial, title-insurance, registration, administration, promotional, cashback, collateral-charge, and other possible terms.
Deadline
Confirm when the offer expires and what happens if you do not respond.
How to compare a quoted rate
Compare like with like. Match the same term and fixed or variable structure, then review the remaining amortization, mortgage characteristics, insurance status, payment assumptions, penalties, fees, restrictions, and the date and source of any market context.
A public advertised rate is not proof that a particular borrower qualifies for it. FairRate does not claim that a percentage, lender name, or province alone proves an offer is fair or unfair.
About payment and rate differences
FairRate does not treat mortgage balance multiplied by a rate spread as an exact annual interest cost, five-year cost, or savings estimate. A scheduled-payment comparison should use the balance, rate, remaining amortization, and Canadian mortgage math, and still does not capture every fee, penalty, prepayment, timing difference, or switching cost.
Comparing another lender
Do not assume that a same-lender renewal, lender switch, refinance, increased borrowing request, amortization change, borrower change, or other material change follows identical qualification, documentation, fee, penalty, and timing rules.
Verify the exact transaction requirements and total costs before relying on an apparent rate difference. FairRate does not provide mortgage approval or underwriting decisions.
What FairRate adds — and what it does not
For a currently supported Canadian 5-year fixed renewal offer, FairRate can provide educational benchmark context when fresh supported comparison data is available. It does not guarantee another rate, approval, savings, or a particular accept, negotiate, or switch outcome.
FairRate is not a lender, mortgage broker, mortgage agent, brokerage, underwriter, law firm, or financial advisor.
Continue your review
Review a quoted rate using like-for-like product questions and clear limitations.
Review the written offer, switching friction, and uncertainty before responding.
See the supported comparison contract, data handling, payment math, verdict rules, and limitations.
Frequently asked questions
What is a mortgage renewal letter in Canada?
A mortgage renewal letter is a lender offer for a new mortgage term when the existing term is ending. The exact contents vary, so review the written rate, term, payment assumptions, remaining balance, maturity timing, fees, conditions, and acceptance instructions shown on your document.
Should I sign my mortgage renewal letter immediately?
A generic website cannot decide that from the letter alone. Review the written product terms, deadline, payment assumptions, penalties, prepayment privileges, portability, fees, restrictions, and any genuine like-for-like alternatives before deciding.
What should I compare before signing a renewal letter?
Compare the same term and fixed or variable structure, confirm the balance and remaining amortization used, review payment and exit terms, and verify the source date and eligibility limits of any market context. A public advertised rate is not proof that you qualify for it.
What mortgage offers does FairRate currently support?
FairRate Canada’s benchmark-backed free checker and paid benchmark reports currently support Canadian 5-year fixed renewal offers only. Variable-rate and other-term offers should not be forced against that reference.
Is FairRate a broker or lender?
No. FairRate is not a lender, mortgage broker, brokerage, mortgage agent, underwriter, law firm, or financial advisor. It provides educational comparison context and optional consumer-paid reports; it does not arrange mortgages or issue approvals.