Canadian mortgage renewal questions, answered directly

Yes — and you should. Your bank's first written renewal offer is almost never the best rate they'll approve. Call retention 60–120 days before maturity with a competing quote from a broker or another lender. Most customers who ask receive 0.20%–0.60% off the posted renewal rate.

Usually yes on balances above $300,000. A 0.30%–0.50% better rate from a competing lender typically saves $5,000–$12,000 over five years on a $400K balance — far more than the $300–$1,500 in switching costs. Below $200K, negotiating with your existing bank is often the better call.

Minimally. A mortgage application typically causes one hard inquiry, worth about 5 points and recovered within 3–6 months. Switching to a new lender at renewal does not close your old mortgage's credit history — it just transfers to the new lender's tradeline.

Most Canadian lenders let you renew or lock a new rate up to 120 days before your term ends, with no penalty. If you're switching lenders, start the application 90–120 days out — the new lender will hold the rate that long while paperwork and legal work complete.

Your mortgage automatically converts to the lender's default renewal product — usually an open or short-term posted-rate mortgage at 6%+, one of the most expensive rates on the sheet. You retain full flexibility to switch, but every month at the posted rate costs meaningful interest. Decide before term end.

If it's within your lender's rate-hold window (usually 90–120 days) and your new term hasn't started yet, most lenders will drop you to the lower rate — but you must call and ask. Once your new term begins, you're locked in until maturity unless you break the mortgage (penalty).

Refinance if you need to take equity out, consolidate high-interest debt, or extend amortization. A straight renewal keeps the loan as-is and is faster, cheaper, and stress-test-exempt. Refinancing re-triggers the OSFI stress test for uninsured borrowers.

Extending amortization at renewal requires a refinance, not a straight renewal, and re-triggers the OSFI stress test for uninsured borrowers. Some lenders offer amortization extensions to 35 or 40 years as a hardship measure — case by case. Insured mortgages cannot exceed 25 years amortization at renewal.

Fixed if payment certainty matters more than beating the market. Variable if you can absorb 2%–3% of rate volatility and expect the Bank of Canada to cut faster than the market has priced in. Historically variable wins ~70% of the time, but the losing 30% (2022–2023) has been very painful.

Yes, through a refinance at renewal — not a straight renewal. Canadian lenders will refinance up to 80% loan-to-value on a conventional refi, or up to 65% for a HELOC portion (with combined mortgage + HELOC capped at 80% LTV). Re-triggers the OSFI stress test.

Not for a straight renewal with your existing lender — they use their internal valuation. For a switch to a new lender, most lenders order and pay for the appraisal themselves ($300–$500). Refinances that increase the loan almost always require a fresh appraisal.

Not for a straight renewal with your existing lender. For a switch to a new lender, yes — but most lenders cover the legal cost through a switch program (title insurance replaces a full title search). Refinances and collateral-charge switches always require a lawyer.

Almost always yes with your existing lender — they don't re-verify credit for a straight renewal. Switching to a new lender or refinancing does require credit approval, and a score below 620 will restrict you to alternative (B) or private lenders at 1%–3% higher rates.

Yes with your existing lender — they do not re-verify employment or income for a straight renewal. Switching lenders or refinancing does require full income verification. If you've just lost work, renew with your existing lender first and shop later once employment is re-established.

Yes, but it requires a refinance — not a straight renewal — because the borrowers are changing. The remaining borrower(s) must qualify for the full loan on their own income under the OSFI stress test. Requires a lawyer to update title.