What Happens When Your Mortgage Renews in Canada (2026)

If your mortgage term is ending, you'll get a renewal letter and a decision to make — but most homeowners don't really understand what's happening or what their options are. Here's exactly what renewal is, what happens at each step, and how to come out ahead.

The short answer

When your mortgage term ends, you renew the remaining balance for a new term at a new rate. Your lender mails an offer 3–4 months ahead; you can accept it, negotiate it, or switch lenders for a better rate. You do not have to re-qualify to renew with your current lender, but you do if you switch — and switching is often where the savings are. See our renewal guide.

Term vs. amortization — the key distinction

Your amortization is the total time to pay off the mortgage (often 25–30 years). Your term is the contract length within that (often 1–5 years). You renew at the end of each term until the mortgage is fully paid. So renewal is normal and expected — it's not refinancing, and it's not paying off the home.

The renewal timeline

• 4–6 months out: the smart time to start. You can often lock a rate early and shop competing offers.
• 3–4 months out: your lender mails its renewal offer.
• Before the date: accept, negotiate, or switch. If you do nothing, many lenders auto-renew you — often at a higher rate or even into an open mortgage. Don't let that happen.

Your options at renewal

1. Accept your lender's offer

Easiest, and fine if the rate is genuinely competitive — but verify that with a competing quote first.

2. Negotiate

Bring a brokered quote and ask your lender to match. The posted offer is rarely their best. Full playbook in renewal strategy.

3. Switch lenders

Move to a new lender for a better rate — usually penalty-free at term-end, though you'll re-qualify. See switching lenders at renewal.

4. Refinance

If you want to pull out equity, consolidate debt, or change your amortization, renewal is a natural time to refinance rather than simply renew. See should you refinance.

Decisions to make at renewal

Renewal is your chance to reset the mortgage to fit your life: fixed vs. variable for the cycle ahead, the term length, your prepayment privileges, and whether to adjust your payment. Use the renewal calculator and payment calculator to compare.

The mistakes that cost money

• Signing the first offer without a competing quote.
• Letting it auto-renew by missing the deadline.
• Ignoring fixed vs. variable and just keeping what you had.
• Forgetting to negotiate the terms — prepayment, portability — not just the rate.

Frequently asked questions

Do I have to requalify when my mortgage renews?

Not if you renew with your current lender — you can renew without re-qualifying or passing the stress test. If you switch lenders, you'll need to qualify with the new one.

When does my lender send the renewal offer?

Typically 3–4 months before your renewal date. You can usually start shopping and lock a rate even earlier, around 4–6 months out.

What happens if I do nothing at renewal?

Many lenders auto-renew you, often at a higher posted rate or into an open mortgage — usually a worse deal. Always review and respond before the date.

Can I change my mortgage at renewal?

Yes — renewal is the ideal time to switch fixed/variable, change the term, adjust prepayment privileges, or refinance to pull out equity or consolidate debt.

Renewal letter in hand? Talk to us before you sign — we'll compare your lender's offer against the whole market with the renewal calculator.