Mortgage Renewal

Roughly 4–6 months before your term ends, your lender mails a renewal offer with a posted rate. Most Canadians sign and return it without negotiating — which is leaving money on the table. The lender's renewal rate is typically discountable; even a 0.20% rate reduction over a 5-year term can save thousands. You can also switch to a different lender at renewal. The new lender pays the discharge fees and registration costs for a straight switch (no equity take-out, same balance, same amortisation). If you want to take cash out for renovations or debt consolidation, it's a refinance instead — different process, more costs, and you must re-qualify under the OSFI stress test. Unlike a new purchase, a straight renewal-switch with a federally regulated lender of the same balance and remaining amortisation does NOT trigger the stress test. That's the key escape hatch for borrowers stuck at one lender with a higher renewal rate.