Find the best mortgage renewal rates in Canada

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Best renewal mortgage rates in Canada

ratehub.ca insights: Variable mortgage rates remain unchanged following this week’s Bank of Canada rate hold. The GoC 5-year yield has also stayed in the 2.7% range, keeping upward pressure on fixed mortgage rates. Given market volatility, consider getting a pre-approval to lock in a rate for up to 120 days.

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Do you have CMHC insurance?

Cashback	Rate	Provider
		Canadian Lender
		Equitable Bank
★Switch ^$4,100		Big 6 Bank
★Switch ^$800		Canwise A Ratehub Company
		Alterna Savings
		Desjardins
		CMLS Financial
		National Bank of Canada
		First National
★Switch ^$4,100		TD Bank
		MCAP
		Meridian Credit Union
★Switch ^$800		Scotiabank
		ICICI Bank Canada
		motusbank
★Switch ^$4,100		Bank of Montreal
★Switch ^$4,500		CIBC
		Tangerine
★Switch ^$4,600		RBC Royal Bank
		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 April 21, 2025, the best high-ratio, 5-year fixed mortgage rate in Canada is 3.79%, which is available across much of the country, including in Ontario, Quebec, British Columbia and Alberta.

As of April 21, 2025, the best high-ratio, 5-year variable mortgage rate in Canada is 3.95%, 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 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 canl be exempted from the stress test as long as their mortgage size and amortization don’t change and their mortgage originated at a federally-regulated financial institution.

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.

You can opt to make a straight switch at renewal – one where your original mortgage amount or amortization period doesn’t change. You may be able to do so without having to requalify for the mortgage stress test. However, if you’re moving to a new lender, you 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 help you get 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 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.

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 to a historic 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 don’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 the 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

April 16, 2025

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.

Highlights from the Bank of Canada’s April 16, 2025 announcement

On April 16, 2025, the Bank of Canada (BoC) announced that it would keep its benchmark overnight lending rate at 2.75%, halting a potential eighth consecutive rate cut. Since June 2024, the BoC has lowered its rate by 225 basis points from its previous peak of 5%.

Although inflation slowed to 2.3% in March, it remains above the BoC's target of 2%. This inflationary pressure, along with continued global trade instability, influenced the decision to hold the rate steady and focus on maintaining economic stability while controlling inflation.
Variable-rate mortgage holders and borrowers with other variable-rate products, such as HELOCs and lines of credit, will see no change in their rates, as the prime rate at most lenders will remain at 4.95%.
Fixed mortgages, which are influenced by government bond yields rather than the BoC's benchmark rate, saw a recent dip in rates as bond yields stabilized around 2.6% due to tariff-related uncertainty. The lowest available five-year insured fixed mortgage rate is currently 3.79% (3.74% in Quebec).
Savers with high-interest savings accounts (HISAs) and Guaranteed Investment Certificates (GICs) will see no change to their returns as a result of the rate hold.
Looking forward, the Bank of Canada’s future rate decisions will depend on how global trade tensions, inflation, and other economic factors evolve in the coming months. The Bank will adjust its policy as needed to respond to changing economic conditions.

Canadian mortgage market update: April 2025

CPI update: Canada’s inflation rate slowed in March 2025, with the Consumer Price Index (CPI) rising by 2.3% year-over-year, down from 2.6% in February. This unexpected drop occurred despite the end of the winter GST tax holiday, which had temporarily reduced prices in key categories like food, alcohol, and children’s items. The decline was mainly driven by lower gas and travel costs, with gasoline prices dropping 1.6% and air travel prices plunging 12% year-over-year. Travel tour prices also decreased by 4.7%. However, food prices continued to rise, with grocery store and restaurant costs both up by 3.2%. Shelter costs grew moderately by 3.9%, primarily driven by a 7.9% increase in mortgage interest costs, which were lower than the 9% rise in February. This decline reflects the impact of the Bank of Canada’s interest rate cuts, which have provided some relief to borrowers. Rent prices continued their upward trend, rising by 5.1%. The lower-than-expected headline inflation may prompt the Bank of Canada to cut rates at its upcoming meeting on April 16. However, core inflation measures like the median and trim CPI remain elevated at 2.9% and 2.8%, respectively.

The impact of the latest U.S. tariffs on Canadian borrowers

In April 2025, the U.S. announced the latest phase in its trade policy, clarifying tariff details that have been in limbo for months. On April 2, U.S. President Donald Trump revealed that the U.S. would maintain existing tariffs, including the 25% tariff on non-CUSMA imports and a 25% tariff on steel and aluminum products. The U.S. also imposed a 25% tariff on foreign cars and auto parts that Canada is still subjected to. However, Canada remains exempt from the U.S.'s new 50% reciprocal tariffs imposed on other countries.

These tariffs have caused significant turmoil in the global financial markets, resulting in a drop in U.S. stock prices and lower bond yields, including a decline in Canada’s 5-year government bond yield to its lowest point since 2022. This led to a decrease in fixed mortgage rates in Canada, which have now dropped to 3.74% for insured mortgages and 3.99% for uninsured borrowers, offering an opportunity for borrowers to lock in lower rates.

The Bank of Canada (BoC), which was initially expected to cut interest rates to respond to economic pressure, may decide to hold rates steady instead. The BoC is adopting a cautious approach and is closely monitoring the evolving situation without making drastic policy changes yet.

The ongoing tariff uncertainty is making potential homebuyers more cautious and hesitant to enter the market. February 2025 data showed a 10.4% decrease in home sales compared to the previous year.

Also read: How could 25% US tariffs impact Canadian mortgage rates?

Housing market forecast for 2025

The Canadian Real Estate Association (CREA) recently shared its 2025 housing market outlook, pointing to a recovery that began in late 2024 when interest rate cuts and pent-up demand boosted activity. In 2025, home sales are expected to reach 532,704, an 8.6% jump from 2024 and higher than the previous estimate of 6.6% growth. Sales are expected to grow further by 4.5% in 2026, reaching 556,662. The average home price is forecast to rise by 4.7% in 2025 to $722,221, with another 3.3% increase to $746,379 in 2026. Different regions will see varied impacts. British Columbia and Ontario are likely to experience strong sales growth due to higher supply and slower activity in 2024. Meanwhile, Alberta and Saskatchewan are expected to see home prices rise more significantly because of tight housing inventories and affordable options compared to other parts of Canada.

Video: 3 tips for renewing your mortgage

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.

2025 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

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3.79%

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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