Insights · Renewal
Renewing in the next six months? Read this before you sign the letter.
Many five-year fixed mortgages are renewing at a higher rate than they started with. The letter from your lender is where the comparison begins, not where it ends.
What happened
A large share of Canadian mortgages comes up for renewal in 2025 and 2026.
What it means for your mortgage
Know the number early
If you took a five-year fixed rate in 2021 or early 2022, expect a higher payment. Work it out before the letter arrives, while you still have time to adjust.
The letter is an opening offer
On a straight switch, with the same balance and amortization, you can move to another lender without redoing the stress test. That gives you room to compare.
Renewal is the penalty-free moment
Lender, term, payment schedule, a lump-sum payment: all of these cost a penalty at other times and cost nothing at renewal.
What to do now
- Find your maturity date and set a reminder six months before it.
- Put your balance and the rate in your letter into the Refinance or renew calculator.
- Send me the letter. You receive a written comparison, and you decide.
Sources
- Mortgage Professional America, July 21, 2025: summary of the Bank of Canada's renewal estimates
- OSFI: uninsured straight switches exempt from the minimum qualifying rate
Information only. Not mortgage, financial or legal advice. Approval, rates and products depend on lender criteria, qualification and application. O.A.C. E.&O.E.