FAIRRATE CANADA WORKSHOP HANDOUT: READING A 5-YEAR FIXED MORTGAGE RENEWAL OFFER Updated: September 3, 2026 Audience: Canadian homeowner education, workplace financial-wellness sessions, community workshops, and resource libraries. PURPOSE Use this handout to discuss what is written in a Canadian mortgage renewal offer, how to compare like with like, and which questions to ask before signing. It is a standalone educational resource, not a lender recommendation or sales handoff. 1. READ THE WRITTEN OFFER Record: [ ] Remaining balance [ ] Offered interest rate [ ] Fixed or variable rate [ ] Term length [ ] Remaining amortization [ ] Payment amount and frequency [ ] Offer expiry date [ ] Fees, restrictions, prepayment privileges, portability, and penalty wording [ ] What happens if the borrower does not respond before maturity 2. COMPARE LIKE WITH LIKE A lower advertised rate is not automatically a usable alternative. Confirm that any comparison uses the same rate type, term, amortization, payment frequency, mortgage amount, and material product conditions. Include switching costs and eligibility requirements before drawing a conclusion. 3. FICTIONAL WORKED EXAMPLE This example is invented for education. It is not a real lender offer, current market benchmark, approval, savings claim, or evidence that another rate is available. Remaining balance: CA$400,000 Remaining amortization: 20 years Payment frequency: monthly Written 5-year fixed renewal offer: 5.19% Fictional like-for-like comparison rate: 4.79% Rate difference: 5.19% - 4.79% = 0.40 percentage points = 40 basis points. Illustrative scheduled monthly payment: - At 5.19%: approximately CA$2,669.69 - At 4.79%: approximately CA$2,583.34 - Difference: approximately CA$86.35 per month, or CA$1,036.20 over 12 months Calculation assumptions: - CA$400,000 principal - 240 monthly payments - Canadian fixed-rate convention modelled as a nominal annual rate compounded semi-annually and converted to an equivalent monthly rate - No fees, insurance, prepayments, refinancing, amortization extension, or product-feature differences - Figures are rounded and illustrative; lender calculations may differ The example shows why a rate difference can affect scheduled payments. It does not show that the fictional 4.79% rate is available, that switching is suitable, or that the monthly difference equals total savings. 4. QUESTIONS TO ASK BEFORE SIGNING [ ] Is this the lender's final available rate for this exact product? [ ] Are other renewal terms or structures available? [ ] Can the rate, payment, fees, restrictions, penalty wording, and expiry date be confirmed in writing? [ ] If another offer is being considered, is it like-for-like after approval requirements and transaction costs? [ ] Would changing payment frequency or amortization change total interest cost? [ ] Is legal, mortgage-broker, or qualified financial guidance appropriate for the household's circumstances? FACILITATOR PROMPTS - Which facts are written in the offer, and which are assumptions? - What would need to be identical for two offers to be compared fairly? - Which costs or restrictions could offset a lower headline rate? - What should the homeowner ask the lender to confirm in writing? - What can this example explain, and what can it not prove? PRIMARY CONSUMER SOURCE Financial Consumer Agency of Canada, "Renewing your mortgage" https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html Checked August 27, 2026; Canada.ca page date: October 15, 2025. FCAC explains that a federally regulated lender's renewal statement must include the balance, interest rate, payment frequency, term, and applicable charges or fees. It also advises consumers to review their needs, shop around, negotiate, and account for switching costs. FAIRRATE CANADA SCOPE AND LIMITATIONS FairRate Canada's benchmark-backed checker currently supports Canadian 5-year fixed mortgage renewal offers only. FairRate Canada is not a lender, mortgage broker, mortgage agent, brokerage, marketplace, law firm, financial advisor, or underwriter. It does not arrange mortgages, approve credit, guarantee another rate or savings, or recommend a particular decision. Methodology and limitations: https://www.fairratecanada.ca/methodology Methodology version checked September 3, 2026: 2026-09-01.1 REPRODUCING OR ADAPTING THE EXAMPLE 1. Record this handout's updated date and methodology version. 2. Use the exact principal, amortization, payment frequency, rates, Canadian semi-annual compounding convention, and rounding stated above. 3. Preserve the fictional-example label and all calculation limitations. 4. If replacing the fictional comparison rate with live public context, record its source, "as of" date, retrieval time, and the methodology version used. Citation and reproduction guidance: https://www.fairratecanada.ca/cite-fairrate Full renewal-offer checklist: https://www.fairratecanada.ca/guides/mortgage-renewal-checklist-canada CONTACT AND CITATION Resource and media questions: Andy Atchison, founder and operator andy@fairratecanada.ca https://www.fairratecanada.ca/ Suggested citation: FairRate Canada, "Reading a 5-Year Fixed Mortgage Renewal Offer," workshop handout, updated September 3, 2026, methodology version 2026-09-01.1. https://www.fairratecanada.ca/press/FairRate_Canada_Renewal_Workshop_Handout.txt Editorial and educational sharing is permitted with attribution to FairRate Canada. Do not remove the fictional-example label, assumptions, source, scope, or limitations.