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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ratehub.ca insights: Fixed mortgage rates were unchanged overnight, but are likely to increase in the near future as bond yields remain in the upper 3.1% range. Getting a pre-approval is recommended when shopping to lock in a rate for up to 120 days. Variable rates are stable.

Best renewal mortgage rates in Canada

Transaction type

Rate type

Current mortgage balance

Amortization

Rate term

Occupancy

Payment frequency

Do you have CMHC insurance?

Cashback	Rate	Provider
		Canadian Lender
		Alterna Savings
		Desjardins
		Meridian Credit Union
★Switch ^$800		Canwise A Ratehub Company
★Switch ^$4,100		Big 6 Bank
★Switch ^$4,100		TD Bank
		CMLS Financial
		First National
★Switch ^$800		Scotiabank
		MCAP
		Equitable Bank
		ICICI Bank Canada
		motusbank
★Switch ^$3,500		CIBC
★Switch ^$3,500		RBC Royal Bank
		Tangerine
		National Bank of Canada
★Switch ^$4,100		Bank of Montreal
		Simplii Financial ™

see which rates I qualify for

Frequently asked questions

What are current mortgage renewal rates?

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

As of November 21, 2024, the best high-ratio, 5-year fixed mortgage rate in Canada is 3.99%, which is available across much of the country, including in Ontario, Quebec, British Columbia and Alberta.

As of November 21, 2024, the best high-ratio, 5-year variable mortgage rate in Canada is 4.85%, 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

October 28, 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.

Video: 3 tips for renewing your mortgage in 2024

Takeaways from the Bank of Canada’s October 23, 2024 Announcement

On October 23, 2024, in its seventh rate announcement this year, the Bank of Canada reduced its Overnight Lending Rate by 0.50%, bringing it down to 3.75%. This marks the fourth rate cut in 2024, following three earlier cuts of 0.25% in June, July, and September.

The decision was driven by the lower-than-target inflation of 1.6% and concerns over economic slowdown, highlighted by modest GDP growth and a decline in GDP per capita.
This rate cut will benefit those with variable-rate mortgages and home equity lines of credit (HELOCs), as most lenders’ prime rates have dropped to 5.95%, reducing borrowers' payments or interest portions.
While fixed mortgage rates are influenced by the bond market rather than the Bank’s rate cuts, bond yields have dropped to around 2.9% in response to the announcement. If yields continue to fall, fixed mortgage borrowers could see further rate discounts.
Previous rate cuts in 2024 had minimal impact on housing demand, but an additional 0.50% rate cut expected in December may draw more buyers back to the market.
The Bank of Canada is anticipated to continue rate cuts to reach a neutral rate between 2.25% and 3.25%. However, there are risks to cutting rates too quickly, including potential weakening of the Canadian dollar, inflationary pressures, or unsustainable rises in housing prices.

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.

Mortgage market update October 2024

Real estate update: According to the new data released by the Canadian Real Estate Association (CREA) on October 15, 2024, home sales saw a significant boost in September. A total of 37,733 homes exchanged hands—a 6.9% rise compared to the same period last year and up 1.9% from August. This activity reflects the impact of the Bank of Canada’s recent rate cuts implemented since June, 2024. The national average home price also recorded a modest annual increase of 2.1%, now standing at $669,630. Sellers are responding to demand, with new listings growing 4.9% from August, though inventory remains just below the long-term average, with 4.1 months of housing supply, signaling a balanced market. CREA highlights that although rate cuts have spurred market activity, some buyers may be holding off, expecting further rate reductions in 2025. As a result, CREA has revised its outlook, forecasting 468,900 sales for 2024, a 5.2% increase from last year, with stronger market recovery anticipated in 2025.

CPI update: The latest Consumer Price Index (CPI) report released by Statistics Canada on October 15, 2024, shows inflation rose only by 1.6% in September, marking the smallest increase since February 2021. This figure is well under the Bank of Canada’s 2% target and the anticipated 1.8%. A significant contributor to this softening inflation was a steep 10.7% drop in gasoline prices, while core inflation (which excludes volatile items like gas) held steady at 2.2%. Mortgage interest costs, a significant contributor to the CPI, also continued to decline, decreasing from 18.8% in August to 16.7% in September. This marks the 13th consecutive month of easing mortgage interest costs, following the impact of the Bank of Canada’s earlier rate cuts, which have gradually lowered borrowing costs for Canadians. Inflation running below target is a positive sign for mortgage borrowers, as they may benefit from sustained affordability improvements.

Also read: Canadian CPI falls to 1.6% in September, increasing chance of half-point rate cut

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.

3.99%

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