Find the best mortgage renewal rates in Canada

Q: What happens if my mortgage expires?

When your mortgage term expires, you have several options: Renew your term with your existing lender Switch to a new mortgage lender for your new term Refinance your mortgage Pay off your mortgage in full and close it

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Best renewal mortgage rates in Canada

ratehub.ca insights: Bond yields remain in the 3% range, which puts heavy upward pressure on fixed mortgage rates. Getting a pre-approval is recommended when shopping to lock in a rate for up to 120 days. Variable mortgage rates are stable.

Transaction type

Rate type

Current mortgage balance

Amortization

Rate term

Occupancy

Payment frequency

Do you have CMHC insurance?

Cashback	Rate	Provider
		Canadian Lender
★Switch ^$4,100		Big 6 Bank
		Desjardins
★Switch ^$800		Canwise A Ratehub Company
		Alterna Savings
		CMLS Financial
★Switch ^$4,500		CIBC
		Meridian Credit Union
		First National
★Switch ^$800		Scotiabank
★Switch ^$4,100		Bank of Montreal
		MCAP
★Switch ^$4,100		TD Bank
		Equitable Bank
		ICICI Bank Canada
		motusbank
★Switch ^$4,600		RBC Royal Bank
		Tangerine
		National Bank of Canada
		Simplii Financial ™

see which rates I qualify for

Why renew with Ratehub.ca?

Here's what you get:

Unlike your lender, we give you the best rate from the start – no need to haggle.
Did you know: You don't have to renew with your lender? You can usually get a lower rate by switching at renewal. In fact, walking into your current bank and re-signing at renewal often means leaving money on the table. Your existing lender has less incentive to provide you with the most competitive rates, as they already have your mortgage business.
Switching comes with cash bonuses of up to $4,000 - that could buy you a vacation!
Switching with Ratehub.ca is fast, convenient, and often without fees.
Don't lose out on thousands in savings!

Frequently asked questions

What are current mortgage renewal rates?

Many Canadian lenders offer the same rates for both mortgage purchases and renewals.

As of December 23, 2024, the best high-ratio, 5-year fixed mortgage rate in Canada is 4.04%, which is available across much of the country, including in Ontario, Quebec, British Columbia and Alberta.

As of December 23, 2024, the best high-ratio, 5-year variable mortgage rate in Canada is 4.35%, which is available across Canada, including Ontario, Quebec, British Columbia and Alberta.

To find the best mortgage rates in Canada in 2024, use our rate table to compare the lowest mortgage rates currently offered by Canada’s Big Banks and top mortgage lenders.

Should I renew my mortgage early?

By law, your lender has to give you 21 days notice before your mortgage term expires – but borrowers can choose to start the mortgage renewal process up to 120 days ahead of the end of their mortgage term without having to pay a penalty to break the term early. Kicking off the process early gives borrowers more options such as shopping around for a better rate, making a lump sum payment to decrease their principal mortgage balance, or opting for a shorter mortgage term.

Learn more about early mortgage renewal.

Can you negotiate mortgage rates at renewal?

Yes – mortgage renewal time is a great opportunity to shop around and see what other mortgage rates you may qualify for at other lenders. You can use this information in hand to negotiate with your existing mortgage lender, or choose to switch your mortgage to a new one. As of November 21, 2024, all mortgage borrowers switching to a new lender upon renewal will be exempt from the stress test, as long as their mortgage size and amortization doesn’t change.

Can a bank deny a mortgage renewal in Canada?

As long as you’ve made all your mortgage payments throughout your existing term, and your profile as a borrower hasn’t materially changed – for example, you haven’t lost your income or taken on a large amount of debt – your lender should have no reason to deny your mortgage renewal application. However, if your current lender chooses not to renew your mortgage, you do have options, such as getting a rate from an alternative lender.

Learn more about your options if your mortgage renewal is denied

What happens if my mortgage expires?

What if I don’t renew my mortgage with the same lender?

Borrowers who wish to make a straight switch at renewal – one where their original mortgage amount or amortization period doesn’t change – can do so without having to requalify for the mortgage stress test, which is the higher of either 5.25% or the contract rate plus 2%. However, borrowers moving to a new lender will still need to qualify for their new rate based on criteria such as their income, credit score, and existing home equity. Switching to a new lender at renewal can be beneficial if they’re offering a more competitive mortgage rate or product with more flexible features.

Do mortgage payments decrease when you renew?

Not necessarily. The mortgage rates available at renewal time will reflect the current borrowing environment in Canada. If rates are much higher than when you first got your mortgage, your monthly payment size could increase. However, if rates are the same or lower than when you first got your mortgage, your payment should decrease as your overall mortgage size will be smaller due to the payments you’ve made over the course of your first mortgage term.

What if I’m renewing at a much higher mortgage rate?

If today’s mortgage rates are higher than when you first took out your loan, you’re not alone; according to a survey by Mortgage Professionals Canada, 57% of Canadians expect an increase in their mortgage rate upon renewal, and 75% of those renewing in 2025 are anxious about renewing at a higher rate, compared to 66% of borrowers overall.

Interest rates rose sharply between 2022 and 2023 as the Bank of Canada – which sets the benchmark for the prime rate used by lenders – increased this trend setting rate a historic 10 times, to a multi-decade high of 5%. While the central bank has now entered a rate cutting cycle and rates are trending lower, they are still considerably higher than borrowing costs in 2020 and 2021, when the Bank’s rate sat at a record low of 0.25%.

Borrowers who are concerned about renewing at a higher mortgage rate should contact their lender to explore their options which can include extending their amortization, getting a lower rate elsewhere, or refinancing their mortgage.

Should I renew my mortgage for 2 or 5 years?

There are pros and cons with either approach. Renewing into a five fixed-rate term can provide longer-term stability in terms of predictable mortgage payments, and general peace of mind – there’s a reason five-year terms are the most popular among Canadian borrowers! However, locking in for that long can mean borrowers may miss out on better mortgage rates, should they trend lower during that time period. Taking out a shorter term, such as a two-year mortgage, can be a good solution for borrowers who want the flexibility to make a change to their mortgage at renewal time sooner. However, shorter-term mortgage rates tend to be higher than five-year terms.

You can use Ratehub’s Mortgage Renewal Calculator to see how your payments would change based on differing term lengths.

What happens at renewal if you have a collateral mortgage?

A collateral mortgage, also referred to as a re-advanceable mortgage, is a product where your lender can lend you more money after you first take your mortgage out, as your property value increases, without having to refinance the mortgage. In a collateral mortgage, the lender registers your home with a collateral charge for a higher amount than the mortgage loan amount than you initially need. This additional borrowing room allows the homeowner to take more money out against their home if they need extra cash. However, this collateral charge can only be registered or discharged by your original lender, and cannot be transferred to a new one. This means borrowers with a collateral mortgage loan cannot switch lenders at renewal time without paying for a lawyer to help them break their mortgage contract.

Learn more about how collateral mortgages work

How is a mortgage renewal different from a refinance?

A mortgage renewal involves simply taking out a new rate and term by signing a new contract when your existing mortgage term expires. Generally, your original mortgage amount and amortization period doesn’t change.

A mortgage refinance means making significant changes to your mortgage, such as the type of mortgage, the principal amount, and the amortization period. Borrowers can either refinance their mortgage at renewal time without having to incur a penalty, or break their mortgage mid-term to refinance, and pay any required mortgage refinance penalties, which differ based on the type of mortgage.

Learn more about refinancing your mortgage

Renewal rates over time

From 2007 - Today

Guide to mortgage renewal rates

Jamie David, Sr. Director of Marketing and Mortgages

December 17, 2024

Key takeaways

When your mortgage term expires, you’ll need to renew it for a new contract.
By law, your lender must inform you of your upcoming renewal within 21 days, but borrowers can start the mortgage renewal process up to120 days before their term ends. This is a great opportunity to shop for better mortgage renewal rates, or to negotiate with your current lender.
Both insured and uninsured mortgage holders won’t be re-stress tested if they switch lenders at renewal, as long as their original mortgage amount and amortization doesn’t change.

Renewing your mortgage is a great opportunity to ensure you’ve got the best mortgage product for your current needs, and make a change if you need to. However, there are some key factors that borrowers should keep in mind.

Switching to a new lender at renewal time

Shop around: Familiarize yourself with the interest rates and products offered by other financial institutions, and whether they’d be a better fit for you in your next mortgage term.
Work with a broker: Rather than having to compare your mortgage rate options yourself, working with a broker is a helpful way to get a full picture of the Canadian mortgage rate landscape. These professionals have access to rates from a number of different lenders, and can help you find your right fit.
Be aware of how other lenders’ products may differ from your current one: Not all mortgage products are the same; some have features that offer borrowers greater flexibility, such as being able to pay off a portion of their principal balance each year with a lump sum or accelerated payments, or the ability to port your mortgage.
Consider limitations of certain mortgage types: Some mortgage products, such as collateral-charge mortgages, don’t allow borrowers to switch lenders at all during the lifetime of the mortgage, without using the services of a real estate lawyer.
Explore cash back bonuses and incentives: Some lenders offer cash promotions and bonuses to new clients, including those switching to a new lender at renewal time. These special promotions may also come with other product requirements, such as taking out a bank account with the bank, and may have required minimums in terms of mortgage size and term length. It’s important to read the fine print when taking out any mortgage product with a promotional cash bonus.

Canadian mortgage market update: December 2024

Real estate update: On December 16, 2024, the Canadian Real Estate Association (CREA) released its November housing market update, showcasing a robust recovery in national home sales. A total of 37,855 homes were sold, representing a 26% increase compared to the same month in 2023 and a 2.8% rise from October. This marks the third consecutive month of sales growth, largely driven by the Bank of Canada's interest rate cuts, which have made borrowing more affordable and boosted buyer activity. The national average home price saw a 7.4% year-over-year increase, reaching $649,411, while the National Composite MLS Home Price Index (HPI) grew 0.6% month-over-month, marking the largest monthly increase since mid-2023. This upward price trend indicates rising competition among buyers, with demand outpacing the available supply. New listings increased by 2.4% from November 2023 to 56,242 homes but saw a slight decline of 0.5% from October, signalling a tightening of inventory. The months of inventory — the time it would take to sell all current listings at the current sales pace — dropped to 3.7 months, its lowest level in 14 months. This reflects a more competitive market, as fewer homes are available for sale, pushing home prices higher and increasing competition among buyers.

CPI update: On December 17, 2024, Statistics Canada reported that Canada’s inflation rate eased to 1.9% year-over-year in November, down marginally from 2% in October. The decline reflects the cumulative effects of the Bank of Canada’s interest rate cuts, which have brought its benchmark rate to 3.25% from 5% earlier this year, easing borrowing costs for Canadians. Mortgage interest costs, a significant contributor to inflation, continued to rise but at a slower pace, increasing 13.2% compared to 14.7% in October. This slowdown helped slow overall shelter inflation, which fell to 4.6%. However, rent prices remained elevated at 7.7%. At the same time, grocery prices climbed by 2.6%, a slight improvement from October’s 2.7%, but still representing a steep 19.6% increase since 2021, keeping household budgets under pressure. While headline inflation inches closer to the Bank of Canada’s 2% target, the core inflation measures — the CPI Trim and CPI Median — remained unchanged at 2.7% and 2.6%, signalling that underlying inflation remains stubborn. As a result, analysts predict the Bank of Canada will proceed cautiously with smaller and more measured rate cuts in 2025.

Read more: Canadian CPI falls to 1.9% in November

Highlights from the Bank of Canada’s December 11, 2024 announcement

In its eighth announcement of the year, the Bank of Canada (BoC) reduced its Overnight Lending Rate by 0.50%, bringing it down to 3.25%. This marks the second 50-basis-point cut in a row, following the October 2024 rate cut. The Bank's aggressive rate-cutting cycle, which began in June 2024, has now resulted in a 175 basis point reduction.

The decision was driven by weak economic growth, with Canada’s GDP growing by only 1% in the third quarter of 2024 and unemployment rising to 6.8% in November.
For Canadians with variable-rate mortgages or home equity lines of credit (HELOCs), this news is welcome relief, as their borrowing costs will drop further with prime rates set to fall to 5.45%. This could reduce their monthly payments or shift a greater portion of those payments toward the principal.
Although fixed-rate mortgages aren’t directly affected by the rate cuts, five-year bond yields dropped to 2.8% even before the rate cut. This will likely lead to further reductions in fixed mortgage rates in the coming days.
High-interest savings accounts (HISAs) and Guaranteed Investment Certificates (GICs) will see lower returns, and savers should consider locking in current rates before they decline further.
The BoC also indicated that future rate cuts in 2025 may be more gradual, as the policy rate has already been significantly reduced.

Video: 3 tips for renewing your mortgage in 2024

Update on Canadian Mortgage Reforms

On September 16, 2024, the federal government introduced major changes to mortgage qualification guidelines, specifically benefiting first-time home buyers and those buying newly-built homes.

Starting December 15, 2024:

All first-time home buyers, including those without insured mortgages, will now have access to 30-year amortization terms. This extended amortization option will also apply to anyone buying a newly-constructed home.
The maximum home price eligible for an insured mortgage (a down payment of less than 20%) will rise from $1 million to $1.5 million.

These reforms mark some of the most significant changes to mortgage rules in over a decade and are expected to improve affordability and housing access for first-time buyers.

For a deeper dive into these new mortgage rules, visit the Ratehub.ca blog.

2024 Canadian mortgage renewal facts

Almost a quarter of Canadians (23%) will be renewing their mortgages in 2025, and almost half within two years. Two-thirds are anxious about having to go through a renewal.
57% of Canadians expect an increase in their mortgage rate upon renewal.
12% of mortgage consumers were renewers or refinancers in 2024 (down from 13% in 2023).
43% of those renewing in 2024 chose 5 year term, down from 53% in 2023.
24% of those renewing in 2024 chose 3 year term, up from 18% in 2023.

Sources:

More information about mortgage renewals

Check out the Ratehub.ca education centre and blog for more information on mortgage renewal rates, and the mortgage renewal process.

The mortgage renewal process

Types of mortgages

See today's best mortgage rates

Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.

4.04%

Best fixed rate in Canada

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For more information, check out these helpful pages

Ratehub.ca education centre

Buying
So you've made the decision to buy a new home! The first step is to figure out how much you can afford to spend.
read more
Renewing
If your current mortgage is up within four months, now's the time when most lenders will allow you to start the early mortgage renewal process.
read more
Refinancing
When deciding whether or not you should refinance your current mortgage and replace it with a new one, there are a few important things to consider.
read more