Mortgages & Financing
Mortgage Renewals
Refinancing
Mortgage Renewal in Canada: How to Get the Best Rate and Save Thousands
Did you buy a home in 2021? Is your mortgage term coming to an end? Scared of 2026 interest rates? Here's everything you need to know before renewing with your big bank, and their inflated interest rates.
Niamh GyulayContent Marketing Specialist @ Pine
5 min read
If your mortgage renewal date is coming up, you’re not alone. Many Canadian homeowners signed their mortgages 3–5 years ago and are now facing higher interest rates.
The good news? You have options. Most lenders make renewal seem automatic and simple, but if you don’t review your options, you could end up paying thousands more in interest.
Mortgage Renewal vs. Mortgage Refinance: What’s the Difference?
You’ve probably heard these words tossed around, but what do they actually mean, and which one is best for you?
Renewal is for when your “contract” has run out, kind of like a phone plan. When you renew, you are signing a new contract that could potentially have a different interest rate and different term. Renewing is usually free, simple to do through your lender, and it’s for the same amount of money you owe once your contract expires.
Refinancing is when you want to change your mortgage and borrow more money. For example, if you really needed to renovate a bathroom and wanted cash to do so, you can borrow more money through refinancing. However, unlike renewing, this often involves a lot of paperwork, and fees.
If you just want a better rate at the end of your term, you’re looking at renewal or switching lenders, not refinancing. At Pine, we help homeowners compare renewal and refinancing options, and consider which one will save you more money in the long run.
When should I start thinking about this?
In Canada, your mortgage lender is legally required to send you a renewal statement at least 21 days before your term ends. You should not wait around for this letter. In fact, there is a 4-6 month window that is prime time to be shopping around, if you plan on switching your mortgage to a new lender with better rates or deals. Most lenders will allow you to lock in rates for 120 days (4 months), so if rates suddenly spike before your renewal actually happens, you’re safe from those rising fees. If they go lower, you can usually still take advantage of those, too. But beware! If you do not act before your mortgage’s expiry date, your current lender may automatically renew you into a 6-month open mortgage often at a much higher interest rate. This can be an expensive penalty for not meeting the term-end deadline, so avoid it!
What should I know about 2026 rates?
If you got your mortgage in 2021, you likely had rates hovering around 1.5% to 2.5%. Of course, as time goes on, and the global pandemic has subsided, in 2026, rates are slightly higher. You should expect a price jump in your payments. Rates are better than they were in 2024, but you will see that your monthly payments will likely increase by about 10-20%. This makes comparing lenders more important than ever. Even a small difference like 0.5% can save thousands over your next 3 to 5 year term.
Something the big banks might not tell you, is that there is no “stress-test bypass” benefit to staying with your current lender anymore. In the past, there was incentive to stay with your current lender by needing to pass a mortgage stress test again if you switch lenders. Now, the government has removed the stress test requirement for switching lenders for a lot of people. This now allows you to get the best rates from a new lender without the fear of a stress test.
What are my options?
The very first thing to do is check your mortgage’s maturity date, as that will tell you how far away from renewing.
When your renewal notice arrives (or rather, 99 days before your renewal notice arrives,) you have three paths you can choose to follow:
Renew with your current lender and their updated rates: This is the most convenient and option, but it can also be the most expensive, especially if you’re with a big bank.
Negotiate with your current lender: A little less convenient, as it requires some investigation and some convincing, like finding lower rates and asking your lender to match them.
Switch mortgage lenders: This is the option that requires the most effort, but can also result in much lower rates. This will require a new application and credit check. That being said, lenders often have promotions run just for people that renew with them, and obviously, one would probably choose a lender with lower rates, saving you thousands in the long run.
How Pine Helps With Mortgage Renewal and Switching
Mortgage renewal with Pine is simple, transparent, and fully online. You can apply in minutes, and instantly see competitive fixed and variable mortgage rates tailored to your situation. If your renewal date is approaching, you can lock in a rate up to 120 days in advance, protecting yourself if rates rise, while still benefiting if they drop.
We help you clearly understand the difference between renewing your mortgage and refinancing, so you’re not making a decision based on convenience alone. Instead of relying on a single offer from your bank, you can compare real alternatives and choose the option that truly fits your budget and long-term goals without sales pressure or hidden surprises.
Mortgage renewal isn’t just paperwork. It’s one of the most important financial checkpoints you’ll face as a homeowner. Starting early and comparing mortgage renewal rates can make a meaningful difference in what you pay over the next several years. If your mortgage renewal date is within 6 months, now is the time to explore your options. Pine can help you secure a competitive mortgage rate and make a confident, informed move forward.