Can I extend my amortization at mortgage renewal?
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.
In 2022–2023, when rate hikes broke many household budgets, most big banks began extending amortizations to 35–40 years as an internal hardship program to keep mortgages performing. This is offered case-by-case, usually only to customers who ask.
A formal refinance to a longer amortization at renewal is straightforward if you qualify under the stress test at the greater of contract rate + 2% or 5.25%. The trade-off is significant: a 30-year vs 25-year amortization cuts monthly payment by roughly 8%–10%, but adds tens of thousands to total interest.
Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8