Reviewed by Scott Dillingham · Licensed Mortgage Broker · Updated May 25, 2026
Mortgage Renewal Case Studies
Six realistic Canadian mortgage renewal scenarios — what the situation looked like, what the broker arranged, and the outcome. These are the kinds of results Canadian homeowners achieve when they shop their renewal instead of auto-signing.
Which case sounds like you?
Each scenario links to a detailed guide. These are composite illustrations — not named clients.
$47K saved switching at 2025 renewal
$720K mortgage coming off a 5-yr fixed at 2.59% facing a TD renewal offer of 5.19%.
Straight-switched from TD to First National at 4.34% — saved approximately $47,000 over the new 5-year term. No stress test required thanks to the November 2024 OSFI exemption. Legal fees covered by the new lender.
Self-employed approval after 3 bank rejections
Incorporated contractor with strong revenue but limited T4 income. Three Big 5 banks declined the renewal on income-qualification rules.
Broker placed the file with a B-lender through the broker channel. Approved at 5.24% for 2 years with a clear path back to an A-lender at next renewal once 2 additional years of NOAs were available.
Co-signer removed at renewal
Homeowner originally qualified with parents as co-signers in 2020. Five years later, income had tripled and they wanted to remove the co-signers but stay with the same lender.
Broker arranged a full refinance (not a straight switch) with the same lender, qualifying the borrower alone on their own income. Parents removed from title and the mortgage. Rate held at 4.24% on a 5-year fixed.
Blend-and-extend saved $18K
$410K mortgage with 18 months remaining at 5.84%. Break penalty would have been ~$21,000 (IRD). Market rates around 4.19%.
Stayed with RBC via blend-and-extend — weighted-average new rate of 4.62% over a fresh 5-year term. Avoided the IRD penalty entirely. Locked in current market pricing for four extra years. ~$18,000 net savings.
Divorce buyout mortgage secured
Separating couple needed a spousal buyout — one spouse buying out the other's share of the marital home. Required a refinance up to 95% LTV, which is only available under CMHC's spousal buyout program.
Broker structured the file under the CMHC spousal buyout insurance program, qualifying the remaining spouse alone. New mortgage at 4.09% (insured), consent order documentation finalized through collaborating lawyers.
Seniors used CHIP reverse mortgage
Retired couple in their early 70s with a $180K conventional mortgage coming up for renewal. Fixed pension income was getting tight once the mortgage payment was factored in.
Rather than renew, they converted to a HomeEquity Bank CHIP reverse mortgage. Mortgage paid off entirely, monthly payment eliminated, and an additional $90K tax-free cash drawn to supplement retirement. No payments owed until the home is sold.
Disclaimer
Composite scenarios illustrating common outcomes. Your results will vary based on your credit, income, property, and lender decisions. All scenarios involve licensed mortgage brokers and lenders operating under Canadian regulations (FSRA, BCFSA, AMF, etc.). This content is educational, not a promise of any specific result.
Frequently Asked Questions
Are these real case studies? +
These are composite scenarios illustrating common outcomes our broker partners have achieved. They reflect realistic numbers for May 2026 rates and real Canadian lender programs, but they are not specific individuals. Results will vary based on your personal situation, credit, income, and property.
Can I actually save $47,000 by switching lenders? +
Yes — on a large mortgage with a big rate gap, 5-year savings of $40,000+ are realistic. On a $720,000 mortgage, the difference between 5.19% and 4.34% is roughly $47,000 of interest over 5 years. The specific number depends on your balance, the rate gap, and amortization.
Is a reverse mortgage right for seniors at renewal? +
A reverse mortgage (CHIP from HomeEquity Bank or Equitable Bank's PATH Home Plan) is one option for homeowners 55+ who want to eliminate mortgage payments. It costs more in interest long-term than a conventional mortgage but solves cash-flow problems. A broker should walk you through all options — including downsizing — before recommending one.
What's the spousal buyout program? +
CMHC's Spousal Buyout Program allows the remaining spouse in a separation to refinance up to 95% of the home's value to buy out their former partner's share. It's treated as a purchase-equivalent insured mortgage. It requires a separation agreement or court order.
Related Guides
Complete Mortgage Renewal Guide
Everything Canadians need to know about renewing a mortgage in 2026.
Switching Lenders at Renewal
How to change lenders at renewal — no stress test on straight switches.
Best Mortgage Renewal Rates
Current best renewal rates — fixed and variable — across Canada.
Self-Employed Renewal
BFS income, stated income, and lender-fit for self-employed borrowers.
Divorce & Mortgage Renewal
Renewing during or after a divorce — qualifying alone, buyout timing.
Renewal News
Latest Canadian mortgage and renewal headlines.