Mortgage Renewal Centre

A mortgage term may be a few months or several years, while the amortization can extend for decades. At the end of each term, the unpaid balance must be dealt with—usually by renewing, switching to another lender, refinancing into a changed structure or paying the mortgage off.

FCAC notes that a federally regulated lender must generally provide a renewal statement at least 21 days before term end and also provide notice if it will not renew. Waiting for that minimum notice period can leave very little time to compare another lender, especially if documents, appraisal or legal work are required.

Renew usually means accepting a new term with the current lender. Switch means moving the mortgage to another lender, often with the balance and remaining amortization substantially unchanged. Refinance means changing the debt structure—for example increasing the loan, taking equity out, consolidating debt or extending amortization.

Those labels matter because documentation, qualification, legal work, insurance treatment, costs and stress-test rules can differ. See Renew vs Switch vs Refinance for the side-by-side comparison.

FCAC says a renewal statement from a federally regulated financial institution includes the renewal balance, interest rate, payment frequency, term and applicable charges or fees. The offered rate is therefore only one part of the proposal.

Compare the new payment, remaining amortization, prepayment privileges, portability, fixed/variable mechanics, connected HELOC or collateral-charge structure, and likely cost if you have to leave before the next maturity. An automatic renewal can be convenient without being the best available structure.

A borrower can face a higher renewal payment because the new rate is higher, because the amortization is shorter than it used to be, or both. A fixed-payment variable mortgage can add another layer if principal repayment slowed during the term and the actual maturity balance is higher than originally expected.

If lowering the payment requires extending amortization, calculate the long-term interest cost as well. FCAC specifically cautions that extending amortization to lower payments increases the interest paid over time.

FCAC says borrowers can move to another lender at renewal if the new lender’s conditions better fit their needs, but the new lender still needs to approve the application. Start shopping a few months before maturity so there is time for underwriting and legal/registration work.

Before assuming a switch is simple, confirm whether the mortgage is stand-alone or part of a collateral/readvanceable plan, whether a HELOC or other debt is secured by the same charge, the remaining contractual amortization, and whether you plan to increase the mortgage amount.

OSFI currently does not expect federally regulated lenders to apply the prescribed uninsured minimum qualifying rate to an uninsured straight switch from one federally regulated lender to another where the remaining contractual amortization and loan amount are not increased. OSFI also says the mortgage must be stand-alone and not a readvanceable combined loan plan; a small increase of up to $3,000 can be permitted for related transaction costs under its stated conditions.

The incoming lender still assesses the loan as a new origination and must perform sound underwriting. In practical terms, no prescribed MQR does not mean no qualification, no documents or guaranteed approval.

FSRA currently views mortgage renewals arranged through Ontario mortgage brokerages as new and distinct transactions rather than mere extensions. Suitability and disclosure therefore need to reflect the borrower’s current circumstances and the product now being recommended.

That matters when income, credit, household expenses, property plans or risk tolerance have changed since the original mortgage. A five-year-old decision should not be copied forward simply because the old mortgage worked.

A private mortgage may be intentionally short-term and can have extension/renewal fees, updated valuation requirements or a lender that simply does not wish to renew. The maturity date is therefore part of the original exit plan, not merely a future shopping date.

If the planned takeout is not ready, act before maturity. See Private Mortgage Renewals and Extensions and Private Mortgage Exit Strategies.

Test at least three questions: Can I afford the payment if rates are higher than I hope? What will the mortgage balance be at the next maturity? What will it cost or restrict if I sell, refinance or move early?

A slightly lower renewal rate can be outweighed by poor prepayment terms, a product that is difficult to switch later, or an amortization extension that materially increases total interest. Use the Mortgage Renewal Calculator to compare the actual payment and balance paths.