Roughly 70% of Canadian homeowners renew their mortgage with their existing lender, and most simply sign the rate on the renewal letter. Banks count on this. The renewal offer you receive is almost never the lender's best rate — it's a starting point.
You absolutely can negotiate. Federally regulated lenders are legally required to send you a renewal statement at least 21 days before your term ends, but nothing stops you from calling weeks or months earlier with a competitive quote in hand.
What actually moves the rate down
Three things work in almost every negotiation: (1) a written rate quote from a competing lender or a licensed mortgage broker, (2) a strong payment history with no missed payments, and (3) a loan-to-value under 80% (which removes stress-test friction for switching).
When you call, the script is simple: 'I've received a quote at X.XX% from another lender. Can you match or beat it?' Then stop talking. Most retention teams have discretion to move 20–60 basis points off the posted renewal rate.
When to start
Start 120 days before your renewal date. Most lenders will hold a rate for 120 days, meaning you can lock in today's rate and still benefit if rates drop between now and your renewal.
Frequently asked
Will negotiating hurt my credit score?
No. Negotiating a renewal with your current lender does not require a new credit inquiry. Getting a quote from a broker or a new lender does trigger a soft or hard pull, but the impact is minimal.
Do I have to switch lenders to get a better rate?
No. Simply having a competing quote is often enough to get your current bank to lower their offer. Switching is only worth it when the savings comfortably exceed the switching costs (typically $500–$1,500).