Process and paperwork
Renewal
The end of a mortgage term, when you sign a new one with your current lender, switch to a new lender, or pay the mortgage off.
At maturity, your contract ends but your mortgage doesn't, and the balance stays the same. You renew with your current lender, move to a new one, or pay it off. There's no penalty, because you're not breaking anything.
The renewal letter your lender sends is a first offer, priced on the assumption that you'll sign it. Roughly two-thirds of Canadian borrowers renew with the same lender, and a large share sign the first rate offered.
A straight renewal with your current lender isn't stress-tested, and since November 2024 neither is an uninsured straight switch to a new lender. Staying put no longer has a regulatory advantage.
Start 120 days before maturity, when you can get a rate hold. If you do nothing, you'll usually be renewed automatically at or near a posted rate.
Related terms
Straight switch
Moving your mortgage to a new lender at renewal without changing the balance or the amortization, and since November 2024, without a stress test if it's uninsured.
Rate hold
A lender's commitment to honour today's rate for a set period, usually up to 120 days, at no cost and with no obligation.
Qualifying rate
The rate lenders test you at: the greater of your contract rate plus 2 percentage points, or 5.25%.
This definition describes how the term is used in Canadian residential mortgage lending. It’s general information, not advice on your file. Rules, thresholds and rates change. Where a figure is quoted, it’s current as of the date shown on the related guide.
Sharp rates. The full picture.
Ask Daniel about this term
Daniel De Sousa, Mortgage Associate, can walk you through it before you sign anything. Or get a rate quote: 6 questions, about two minutes, and no credit check to start.
No credit check, and no commitment.