Ontario Mortgage Renewal 2026: Compare Before You Sign

A mortgage renewal letter usually arrives in a plain envelope. It names a rate and a term and asks for a signature. Because it looks routine, many homeowners sign without comparing it to anything. Renewal is a real decision: it sets your rate, term and payment for the next several years, and it is a natural point to compare other lenders.

This guide explains how renewal works in Ontario, what to check, and when to start.

What the Renewal Letter Is, and When It Arrives

Two different things are often mixed up here, so it helps to separate them.

• The legal minimum. According to the Financial Consumer Agency of Canada (FCAC), a federally regulated lender must send a renewal statement at least 21 days before your term ends. The statement must say that the rate offered will not increase before your renewal date.2
• The practical timeline. FCAC advises starting to look at your options a few months before your term ends and not waiting for the letter.2 Many lenders contact customers earlier than the legal minimum and some will hold a rate for a period, but the timing and length of holds differ by lender. Check your own lender's terms.

A federally regulated lender is a bank or similar institution regulated by the federal government. Lenders regulated provincially, including some credit unions, may follow different rules, so check with yours.

FCAC also notes that the rate in your letter is not necessarily the lowest you can get. You may qualify for a discounted rate, and sharing offers from other lenders or brokers can help when you talk to your lender.2 If you do nothing, renewal may be automatic, and the statement will say so.

The 2026 Rate Environment

The Bank of Canada sets the policy rate, which influences variable mortgage rates and, more loosely, fixed rates. According to the Bank of Canada, it lowered the policy rate by 0.25 percentage points to 2.25% on October 29, 2025, and has held it at 2.25% at every announcement since, most recently on September 2, 2026.1

Source: Bank of Canada, as of September 2, 2026. This table shows the policy rate, not mortgage rates you would be offered.

Mortgage rates offered to you are set by each lender and depend on the product, term, whether the mortgage is insured, your file and the date. We do not publish a rate table here because rates change often. Ask for current written offers from your lender and from at least one alternative.

If you are renewing from a rate you secured in 2021, expect your payment to change. If you are renewing from a rate you secured during 2023 or 2024, your new rate may be higher or lower. In either case, compare the whole offer, including term, prepayment terms and penalty rules, and not only the headline rate.

A Renewal Timeline

The dates below are a suggested plan, not rules. The only fixed figure is the 21-day minimum for the renewal statement from a federally regulated lender.

Four to six months before maturity

• Read your current mortgage terms. Note your maturity date, prepayment privileges, and what happens at renewal.
• Decide what you want. A different term? Fixed or variable? A different amortization or payment amount?
• Talk to a mortgage broker or other lenders to see what is available for your situation.

About three months before maturity

• Ask about rate holds. Some lenders will hold a quoted rate for a set period. How long, and whether you can still benefit if rates fall, depends on the lender, so ask.
• Gather documents if you are considering a switch. Lenders typically ask for proof of income, a mortgage statement and a property tax bill. Your broker or new lender will tell you exactly what they need.

One to two months before maturity

• Submit an application if you are switching, leaving time for approval, any appraisal and legal work.
• Talk to your current lender again. If you hold a competing offer, share it. FCAC notes that you may qualify for a rate lower than the one in your letter.2 Whether they will improve their offer is up to them.

The final weeks

• Decide, and sign only what you have read. Whether you stay or switch, confirm the rate, term, payment and any fees in writing.

Switching Lenders: Costs and the Straight-Switch Rule

What switching can cost. FCAC lists the costs to expect when you move to a new lender: set-up fees with the new lender, which may include discharge, registration, transfer or assignment fees from your current lender; an appraisal if one is needed; other administration fees; and possibly new mortgage insurance premiums if your loan amount increases or you extend the amortization.2 Legal fees and who pays them vary, so ask both lenders for a written breakdown. Some lenders cover some of these costs, but not all do.

The straight-switch rule. On November 21, 2024, the Office of the Superintendent of Financial Institutions (OSFI) stopped prescribing a minimum qualifying rate (the stress test) for uninsured "straight switches". OSFI describes a straight switch as an existing stand-alone uninsured mortgage moving from one federally regulated lender to another with no increase in the remaining amortization or the loan amount; the balance may rise by $3,000 to cover transaction costs, and equity take-outs are not included. Lenders must still underwrite these as new loans under OSFI's Guideline B-20.3 Mortgages outside this description, such as ones where you borrow more or extend the amortization, may be treated differently, so ask your lender or broker how your file would be assessed.

How a Broker Can Help at Renewal

You do not need to be buying a home to use a mortgage broker. At renewal, a broker can:

• Compare offers from several lenders against the one in your renewal letter
• Explain differences in prepayment privileges, penalties and portability
• Submit an application to another lender if you decide to switch
• Coordinate with the lawyer who handles the discharge and new registration

How brokers are paid depends on the lender and the product. In many conventional placements the lender pays the broker, and in some cases a fee is charged to the borrower. Ask any broker, including us, to explain in writing how they are paid before you proceed. Comparing offers costs you nothing in most cases and gives you more information before you decide.

Harder Renewals

Moving from a private mortgage to a bank or B lender

If you hold a private mortgage, renewal is a natural time to ask whether a lower-cost option is available. Private lenders often set shorter terms and may charge renewal fees, and qualifying with other lenders depends on income, credit, the property and the lender's own rules, which differ widely. Start the conversation well before maturity so you have time to find out where you stand. If you are close to qualifying but not there yet, a shorter private renewal combined with a plan to improve your file may be an option to discuss. Our guide to bad credit mortgage options in Ontario explains how lenders look at credit.

If you are behind on payments or your property value has dropped

If you have missed payments, your lender may still renew you, but it may change the rate or add conditions. A broker can explain options, which may include refinancing with a different lender, though what is available depends on your situation.

If your property is worth less than when you bought it, a new lender will usually require an appraisal and may not lend as much as your current balance. Staying with your current lender may then be the more practical choice, and it is still worth asking for their best terms.

Common Mistakes at Renewal

Mistake 1: Signing the first offer without comparing

The letter is one offer. Asking for others usually takes little time.

Mistake 2: Focusing only on rate

Prepayment privileges, portability and the penalty formula matter too. Two mortgages with similar rates can cost very different amounts if you need to break one early.

Mistake 3: Skipping the amortization decision

Renewal is a chance to adjust your amortization or payment. A shorter amortization raises the payment and lowers total interest. A longer one lowers the payment and raises total interest. Check any change with your lender, since extending the amortization can affect insurance and approval.

Mistake 4: Ruling out a switch because it seems like too much work

Add up the switching costs from FCAC's list, get quotes in writing, and compare them with what a lower rate would save over the term. If the saving is larger, a switch may make sense.

Mistake 5: Waiting until the last minute

A federally regulated lender need only send the renewal statement 21 days before maturity. That leaves little time for an application, appraisal and legal work. Starting a few months ahead keeps your options open.