Renew
Keep the existing lender and choose a new term/product if the renewal offer fits your plan.
Mortgage renewal
Mortgage renewal in BC: compare your next term.
Renewal is a useful point to review the remaining balance, current contract, new rate and term, prepayment rules, future plans and whether switching or refinancing makes sense.
What happens at mortgage renewal? When a mortgage term ends and a balance remains, the borrower typically needs a new term or financing arrangement. Options can include accepting a renewal from the existing lender, moving the mortgage to another lender, or refinancing if the borrower wants to change the balance or structure. Qualification and costs can differ between these paths.
Three paths
Renew, switch or refinance?
Switch
Move the existing mortgage balance to another lender. Qualification, legal/transfer costs and product rules should be reviewed.
Refinance
Change the mortgage amount or structure—for example to access equity or consolidate debt. Refinancing can have different qualification and cost implications.
Before signing
Compare more than the new payment.
A lower payment can come from several different changes. Look at the rate, term, amortization, penalties, privileges and flexibility together.
Renewal review checklist
- Current balance and remaining amortization
- Renewal rate, term and payment
- Fixed versus variable structure
- Prepayment privileges and penalty method
- Plans to move, sell, renovate or borrow
- Whether income/property circumstances have changed
When should you start reviewing a renewal?
Start comparing options a few months before your current term ends, as the Financial Consumer Agency of Canada recommends. Gather your renewal offer, current mortgage statement and plans for the property. Allow time for a new lender to assess the application and for any legal or registration work.
A practical renewal comparison checklist
- Record your current position. Note the balance, maturity date, remaining amortization, charge type and any other loans secured against the home.
- Request comparable written offers. Use the same balance, term and amortization, and ask what fees are included or paid by the lender.
- Check the mortgage features. Review extra-payment options, portability, early repayment charges and restrictions that could affect a move or future refinance.
- Confirm the total switching cost. Ask about discharge, transfer, registration, appraisal, legal and administrative costs. A rate difference alone is not the full comparison.
- Confirm funding arrangements. Ask who is responsible for the transfer, which documents are outstanding and when you need to sign.
Use the Canadian mortgage calculator to compare payments. If the new proposal changes the balance or amortization, use the refinance comparison calculator and compare the remaining balance over the same time period.
What if the mortgage has a collateral charge?
A collateral charge may secure other borrowing as well as the mortgage. Ask your current lender which debts are covered and what must be repaid or transferred. Confirm the discharge and new registration arrangements with the lender and your lawyer or notary before choosing a switch.
Does switching lenders always save money?
No. The comparison should include the new rate and payment as well as qualification, legal or transfer costs where applicable, appraisal requirements, product restrictions, penalty exposure and how long the borrower expects to keep the mortgage.
Can renewal be a good time to refinance?
It can be a natural time to review refinancing because the existing term is ending, but refinancing changes the financing rather than simply renewing the existing balance. The borrower should compare the purpose of the refinance, total cost and longer-term impact.
Source checked September 9, 2026: Financial Consumer Agency of Canada: renewing your mortgage. Confirm current eligibility and costs with the lender handling your application.