Find the best mortgage renewal rates in Canada

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Best renewal mortgage rates in Canada

ratehub.ca insights: Several lenders decreased their fixed mortgage rates over the weekend, as bond yields remain in the 3% range. However, bond markets and rates may move quickly should incoming President Trump enact threatened tariffs following today's inauguration. Getting a pre-approval is recommended when shopping to lock in a rate for up to 120 days.

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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
		Equitable Bank
		Meridian Credit Union
		CMLS Financial
★Switch ^$4,100		Bank of Montreal
		First National
★Switch ^$800		Scotiabank
		MCAP
★Switch ^$4,100		TD Bank
		ICICI Bank Canada
		motusbank
★Switch ^$4,600		RBC Royal Bank
★Switch ^$4,500		CIBC
		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 January 21, 2025, 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 January 21, 2025, the best high-ratio, 5-year variable mortgage rate in Canada is 4.45%, 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

January 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.

Canadian mortgage market update: January 2025

Real estate update: On January 15, 2025, the Canadian Real Estate Association (CREA) released its December housing market update, showcasing a seasonal slowdown after a robust autumn. A total of 27,643 homes were sold in December, marking a 5.8% drop from November but a notable 19.2% increase compared to December 2023, highlighting the market's ongoing recovery. The national average home price grew 2.5% year-over-year to $676,640 but softened 2.2% month-over-month. The MLS Home Price Index (HPI) recorded a 0.3% monthly gain and a minimal 0.2% annual decline, signalling price stabilization as buyer demand persists. Inventory levels rose 7.8% year-over-year to 128,000 homes by the end of December but remained below the long-term average of 150,000. New listings fell 1.7% from November to 29,128, while months of inventory edged up to 3.9, keeping market conditions near the seller’s territory. The sales-to-new-listings ratio (SNLR) remained balanced at 56.9%. Looking forward, CREA predicts an active spring market in 2025 as lower borrowing costs and fresh listings are expected to drive demand.
Read more: Canadian real estate ends 2024 with chilly sales

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.

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.

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

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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