{ "name": "MortgageRenewalHub.ca FAQ", "url": "https://mortgagerenewalhub.ca/llms-faq.json", "updated": "2026-09-06", "relatedFeeds": { "index": "https://mortgagerenewalhub.ca/llms.txt", "fullSite": "https://mortgagerenewalhub.ca/llms-full.txt", "faq": "https://mortgagerenewalhub.ca/llms-faq.json" }, "faqs": [ { "id": "faq-1", "category": "homepage", "question": "Do I have to pass a stress test to switch lenders at renewal?", "answer": "Not as a blanket rule. On November 21, 2024, OSFI exempted uninsured straight switches (same balance, same remaining amortization, no new money) from the prescribed Minimum Qualifying Rate (MQR). Insured simple renewals were already exempt. Guideline B-20 and lender overlays still apply — a new lender can still require credit, income, or property checks. Refinances, new money, or amortization changes still trigger the MQR. Official: OSFI November 21, 2024 letter. See our stress test at renewal guide.", "source_url": "https://mortgagerenewalhub.ca/" }, { "id": "faq-2", "category": "homepage", "question": "How much can I save by shopping around at renewal?", "answer": "Significantly. Even a 0.25% rate difference saves approximately $7,500 in interest over 5 years on a $600,000 mortgage. Canadians who shop around through a broker typically save 0.25–0.75% vs. their bank's first offer.", "source_url": "https://mortgagerenewalhub.ca/" }, { "id": "faq-3", "category": "homepage", "question": "Is a mortgage broker free to use?", "answer": "Yes, in virtually all cases. Mortgage brokers are paid a finder's fee by the lender you ultimately choose — you pay nothing. Their service, advice, and access to 30+ lenders is free to you.", "source_url": "https://mortgagerenewalhub.ca/" }, { "id": "faq-4", "category": "homepage", "question": "What are the best mortgage renewal rates in Canada for 2026?", "answer": "Rates change daily and depend on credit, loan-to-value, and property type. Tables on this site are a September 2026 sample comparison — not a live rate sheet (fixed and variable alike). Get a live quote from a licensed broker before you sign; shopping typically beats a bank's first renewal letter by 0.25–0.75%.", "source_url": "https://mortgagerenewalhub.ca/" }, { "id": "faq-5", "category": "homepage", "question": "What happens if I do nothing at renewal?", "answer": "Your lender may automatically renew your mortgage if you do not respond before maturity. FCAC notes the rate and term you receive may not be the best available. Compare offers before the deadline.", "source_url": "https://mortgagerenewalhub.ca/" }, { "id": "faq-6", "category": "homepage", "question": "When should I start thinking about my renewal?", "answer": "12 months before your maturity date gives you the most options. At 120 days out, you can lock in a rate hold. At 30 days out, you should be finalizing your lender choice.", "source_url": "https://mortgagerenewalhub.ca/" }, { "id": "faq-7", "category": "rates", "question": "Are best renewal rates the same in every province?", "answer": "Broker-channel insured rates are largely national, but Quebec notary costs, credit-union pricing, and local lender overlays change your net savings. Compare the rate gap against switch costs for your province before you accept a bank letter.", "source_url": "https://mortgagerenewalhub.ca/best-mortgage-renewal-rates/" }, { "id": "faq-8", "category": "rates", "question": "Are renewal rates the same as purchase rates in Canada?", "answer": "Not always. At renewal, your loan-to-value may have improved (home appreciation), you may qualify for different insurance tiers, and uninsured straight switches are exempt from the prescribed MQR since November 21, 2024 (B-20 overlays remain). Broker renewal rates are often competitive with purchase rates for insured mortgages, but bank renewal letters rarely reflect market-best pricing.", "source_url": "https://mortgagerenewalhub.ca/best-mortgage-renewal-rates/" }, { "id": "faq-9", "category": "rates", "question": "How much can I save by not accepting my bank's renewal rate?", "answer": "On a $600,000 mortgage, a 0.50% rate difference costs approximately $15,000 in extra interest over a 5-year term. Canadians who compare through a mortgage broker typically save 0.25–0.75% versus their bank's first renewal offer.", "source_url": "https://mortgagerenewalhub.ca/best-mortgage-renewal-rates/" }, { "id": "faq-10", "category": "rates", "question": "Should I choose fixed or variable at renewal in 2026?", "answer": "Fixed offers payment certainty; variable offers flexibility if policy rates move. Confirm current overnight and prime on the Bank of Canada site, then have a broker model both with your balance and a live quote — sample tables on this page are not a forecast.", "source_url": "https://mortgagerenewalhub.ca/best-mortgage-renewal-rates/" }, { "id": "faq-11", "category": "rates", "question": "What are the best mortgage renewal rates in Canada right now?", "answer": "There is no single posted “best rate today” that fits every file. Tables on this page are an September 2026 sample comparison — not a live rate sheet. Your quote depends on credit, LTV, occupancy, and property type. Get a live quote from a licensed broker; Big Six renewal letters typically sit 0.25–0.75% above a shopped broker-channel offer.", "source_url": "https://mortgagerenewalhub.ca/best-mortgage-renewal-rates/" }, { "id": "faq-12", "category": "rates", "question": "What documents do I need to get a renewal rate quote?", "answer": "For a straight switch quote: government ID, recent mortgage statement (balance and maturity), property address, and employment/income details if the lender requests them. Straight transfers since November 2024 often need less income documentation than a refinance. Use our renewal document checklist generator for a tailored list.", "source_url": "https://mortgagerenewalhub.ca/best-mortgage-renewal-rates/" }, { "id": "faq-13", "category": "rates", "question": "When should I lock in a renewal rate hold?", "answer": "Start shopping 120 days before your maturity date. Most lenders offer rate holds of 90–120 days (some up to 180). If rates drop after you lock in, many lenders honour the lower market rate automatically.", "source_url": "https://mortgagerenewalhub.ca/best-mortgage-renewal-rates/" }, { "id": "faq-14", "category": "francais", "question": "Combien coûte un changement de prêteur au Québec?", "answer": "Comptez environ 800 $ à 1 500 $ de frais de notaire, plus frais de radiation. Une économie de 0,25 % sur 500 000 $ peut dépasser 7 500 $ sur 5 ans.", "source_url": "https://mortgagerenewalhub.ca/fr/faq-renouvellement-hypothecaire/" }, { "id": "faq-15", "category": "francais", "question": "Dois-je renouveler avec ma banque?", "answer": "Non. Vous pouvez transférer à un autre prêteur au renouvellement. Comparez toujours — la plupart des économies viennent du magasinage, pas de la fidélité.", "source_url": "https://mortgagerenewalhub.ca/fr/faq-renouvellement-hypothecaire/" }, { "id": "faq-16", "category": "francais", "question": "Le test de stress s'applique-t-il au renouvellement?", "answer": "Pas comme règle générale. Depuis le 21 novembre 2024, le TQM prescrit ne s'applique pas aux transferts simples non assurés (même solde, même amortissement, pas de nouvel argent). La ligne B-20 et les exigences internes du prêteur restent. Il s'applique si vous refinancez ou augmentez le montant.", "source_url": "https://mortgagerenewalhub.ca/fr/faq-renouvellement-hypothecaire/" }, { "id": "faq-17", "category": "francais", "question": "Qu'est-ce que le renouvellement automatique?", "answer": "Si vous ne répondez pas avant la date limite, la banque peut renouveler au taux indiqué dans la lettre — souvent non négocié. Ne laissez pas passer le délai.", "source_url": "https://mortgagerenewalhub.ca/fr/faq-renouvellement-hypothecaire/" }, { "id": "faq-18", "category": "faq", "question": "Can a bank deny my mortgage renewal in Canada?", "answer": "Yes, but it's rare for borrowers in good standing. Federally regulated lenders can decline renewal if you've had serious payment delinquencies, your credit has collapsed, or the property no longer meets their criteria. They cannot deny a simple renewal solely because you shopped elsewhere. If denied, contact a mortgage broker immediately — B-lenders and alternative lenders often renew when A-lenders won't.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-19", "category": "faq", "question": "Can I extend my amortization at renewal to lower my payment?", "answer": "Sometimes. Uninsured mortgages may be extended with lender approval subject to qualifying. The Canadian Mortgage Charter encourages lenders to offer amortization extensions as a hardship measure for borrowers in genuine difficulty.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-20", "category": "faq", "question": "Can I lock in a rate before receiving my renewal statement?", "answer": "Yes. You don't need to wait for your lender's renewal statement. Most lenders offer 120-day rate holds. Contact a broker anytime in the 120-day window — you can lock a competing rate and use it to negotiate with your current lender before they even send their offer.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-21", "category": "faq", "question": "Can I negotiate my renewal rate?", "answer": "Yes, absolutely. Your current lender's renewal offer is a starting point, not a final offer. Use competing quotes from a broker to push your lender for a better rate. Many lenders will match or beat competitive offers to retain your business.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-22", "category": "faq", "question": "Can I renew an investment property mortgage?", "answer": "Yes. Investment property mortgages follow similar renewal rules. Stay with the current lender at a simple renewal and the prescribed MQR is typically not re-applied. Uninsured straight switches since November 21, 2024 are exempt from the prescribed MQR; B-20 and lender overlays remain. Rates are typically 0.10–0.50% higher than owner-occupied. For 5+ unit properties, commercial mortgage rules apply.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-23", "category": "faq", "question": "Can I renew if I've had a recent bankruptcy?", "answer": "Renewal after bankruptcy is possible but challenging. Most A-lenders require 2+ years from discharge plus re-established credit. B-lenders may work with you sooner, typically 1–2 years post-discharge with strong equity. Private lending bridges the immediate post-discharge gap.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-24", "category": "faq", "question": "Can I renew my mortgage early (before my term ends)?", "answer": "Your current lender may allow early renewal within 120 days of maturity, often without a penalty. Switching lenders early (more than 120 days before maturity) typically requires a prepayment penalty. Evaluate whether the rate savings offset any penalty.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-25", "category": "faq", "question": "Can I renew my mortgage if I'm unemployed?", "answer": "Staying with your current lender at a simple renewal is usually the simplest path if payments are current — the prescribed MQR is typically not re-applied. Uninsured straight switches are exempt from the prescribed MQR since November 21, 2024, but lenders may still apply overlays (including income checks). Refinancing or extending amortization requires income proof — EI usually doesn't count. See our job loss at renewal guide.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-26", "category": "faq", "question": "Can I switch lenders at renewal?", "answer": "Yes. Switching lenders at renewal is one of the most impactful financial decisions you can make. Since November 21, 2024, uninsured straight switches are exempt from the prescribed MQR. Guideline B-20 and lender overlays still apply.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-27", "category": "faq", "question": "Can my current lender refuse to renew my mortgage?", "answer": "Technically yes, though it's uncommon for performing borrowers. If your credit has declined severely or you've had multiple missed payments, your lender may not offer a renewal. You then need a broker to find a B-lender or alternative solution.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-28", "category": "faq", "question": "Can self-employed borrowers renew their mortgage?", "answer": "Yes, though it requires more documentation. A-lenders require the last 2 years' NOAs and T1 returns. Brokers access Alt-A programs from monolines and B-lenders that use bank statements or gross revenue to qualify self-employed borrowers. Start 120–180 days before maturity. Read our self-employed mortgage renewal guide for full details.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-29", "category": "faq", "question": "Do I need a stress test to switch lenders at renewal?", "answer": "Not as a blanket rule. Since November 21, 2024, uninsured straight transfers (same balance, same amortization, no new money) are exempt from the prescribed MQR. Guideline B-20 and lender overlays remain. Changing the loan amount, amortization, or accessing equity is a refinance and the MQR still applies.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-30", "category": "faq", "question": "Does my lender have to notify me before renewal?", "answer": "Yes. Under FCAC rules, federally regulated lenders must send a renewal statement at least 21 days before your maturity date. The Canadian Mortgage Charter encourages lenders to proactively contact borrowers 4–6 months before renewal to discuss options.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-31", "category": "faq", "question": "How does separation or divorce affect my mortgage renewal?", "answer": "Separation while in a joint mortgage is complex. Options include: one spouse buys out the other (requires refinance and stress test), both remain on the mortgage, or you sell. Removing a co-borrower always requires a full refinance. Get legal and broker advice early. See our divorce mortgage renewal guide for a full walkthrough.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-32", "category": "faq", "question": "How far in advance should I start the renewal process?", "answer": "Start 120 days (4 months) before your maturity date. Most lenders offer rate holds for up to 120 days, so you can lock in today's rates while still having time to shop, compare, and switch if needed.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-33", "category": "faq", "question": "How long does a mortgage renewal take?", "answer": "Staying with your current lender: 1–2 weeks (mostly administrative, often electronic). Switching lenders: 3–6 weeks for application review, legal coordination, and funding. Starting 120 days before maturity gives you ample time for either scenario.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-34", "category": "faq", "question": "How long does it take to switch lenders at renewal?", "answer": "Allow 3–6 weeks from application to funding. Starting 120 days before your maturity date gives you ample time. A mortgage broker can often expedite clean, straightforward switches.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-35", "category": "faq", "question": "How much can I save by shopping at renewal?", "answer": "On a $600,000 mortgage, even a 0.60% rate reduction saves approximately $3,600/year or $18,000 over a 5-year term. On larger mortgages common in Ontario and BC, the savings are even greater. Using a broker to access monoline lenders consistently outperforms staying with your current bank. Use our mortgage renewal calculator to model your savings.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-36", "category": "faq", "question": "Is it worth paying to break my mortgage early to get a lower rate?", "answer": "It depends on the penalty vs. the interest savings. If your penalty is $5,000 and switching saves $4,000/year, you break even in 15 months — likely worth it. Variable rate mortgages carry only 3-month interest penalties, making mid-term breaks more manageable than fixed-rate IRD penalties.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-37", "category": "faq", "question": "Is the rate my lender offers in the renewal statement the best I can get?", "answer": "Almost never. Lenders send renewal statements at their posted rates — their highest published rates. The discounted rates available through negotiation or via a broker are typically 0.50%–1.50% lower. Always compare before signing.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-38", "category": "faq", "question": "Should I choose fixed or variable at renewal?", "answer": "It depends on your risk tolerance, budget flexibility, and rate outlook. Fixed provides payment certainty. Variable (ARM or VRM) fluctuates with the Bank of Canada rate, has historically outperformed fixed over long periods, and carries a much lower break penalty. As of May 2026, both types are competitively priced within a modest spread. See our full fixed vs. variable at renewal guide for a detailed comparison.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-39", "category": "faq", "question": "Should I use a mortgage broker at renewal?", "answer": "Yes, for virtually all borrowers. A mortgage broker is free to use (paid by the lender when your mortgage funds), accesses 30+ lenders including monoline lenders unavailable directly to the public, and consistently finds better rates than most borrowers achieve by going directly to one lender.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-40", "category": "faq", "question": "What are my rights under the Canadian Mortgage Charter?", "answer": "The Canadian Mortgage Charter is a policy framework (not legislation). It encourages federally regulated lenders to contact you 4–6 months before renewal, discuss switch options, consider hardship relief such as amortization extensions, and remove internal barriers to those measures. See our full Charter guide for details.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-41", "category": "faq", "question": "What are prepayment privileges?", "answer": "Prepayment privileges allow you to make extra payments on your mortgage principal beyond your regular scheduled payments, without penalty. Most mortgages allow 10–20% of the original principal as an annual lump sum. Using these privileges accelerates principal paydown and saves significant interest.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-42", "category": "faq", "question": "What determines mortgage rates at renewal?", "answer": "Fixed rates are primarily driven by Government of Canada bond yields (especially the 5-year bond). Variable rates track the Bank of Canada overnight rate via your lender's prime rate. Your credit score, mortgage balance, LTV ratio, and choice of lender also affect the rate you receive.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-43", "category": "faq", "question": "What documents are required for mortgage renewal?", "answer": "Staying with your current lender: often just signing the renewal agreement — many renewals are administrative with no new docs. Switching lenders: recent mortgage statement, valid photo ID, proof of income (pay stubs or NOAs), property tax bill, and home insurance binder. Self-employed borrowers need 2 years of T1s/NOAs. Use our document checklist generator for a tailored list.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-44", "category": "faq", "question": "What does it cost to switch lenders?", "answer": "Total switching costs typically range from $700 to $1,800. This includes: discharge fee from old lender ($200–$400), legal/registration fees ($300–$600), and potentially an appraisal. Many new lenders offer to cover legal and discharge fees as an incentive — always ask your broker.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-45", "category": "faq", "question": "What happens if I can't afford my new mortgage payment at renewal?", "answer": "Contact your lender immediately. The Canadian Mortgage Charter encourages lenders to work with borrowers experiencing hardship at renewal — options include temporary interest-only payments, extending amortization to reduce payments, or deferred payments. A broker can also explore B-lender options if your current lender won't accommodate.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-46", "category": "faq", "question": "What happens if I don't sign my renewal on time?", "answer": "Your lender may automatically renew your mortgage if you do not respond before maturity. FCAC notes the rate and term you receive may not be the best available. Some lenders convert to a short-term open product that you can break without penalty — confirm your letter, then compare offers.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-47", "category": "faq", "question": "What happens if I'm in a consumer proposal at renewal?", "answer": "A consumer proposal significantly impacts your renewal options. B-lenders (Home Trust, Equitable, Haventree) often work with borrowers who've completed a consumer proposal and been discharged for 2+ years. Private lending may be needed immediately after discharge.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-48", "category": "faq", "question": "What happens if your mortgage renewal is denied?", "answer": "If your lender won't renew, you must find another lender before maturity or pay off the balance. Options include: switching to a B-lender (Home Trust, Equitable, Haventree), a credit union with flexible underwriting, or a private short-term bridge while you repair credit. Missing maturity without a plan triggers conversion to an open mortgage at posted rates — much more expensive. Start shopping 120+ days early if your file is weak.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-49", "category": "faq", "question": "What happens on my actual maturity date?", "answer": "If everything is arranged in advance: your new lender's funds pay out the old lender, the old mortgage is discharged, the new mortgage is registered, and your new term and rate begin. Your next scheduled payment goes to the new lender.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-50", "category": "faq", "question": "What if my property value has dropped below my mortgage balance?", "answer": "This is called negative equity. Renewal options are more limited — you can't easily switch lenders. Your current lender may still renew at maturity. Contact them well before the maturity date and seek broker advice early.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-51", "category": "faq", "question": "What is a collateral charge and why does it affect switching?", "answer": "A collateral charge registers your mortgage for more than your actual loan amount. It cannot be assigned (transferred) to a new lender — you must fully discharge and re-register, incurring full legal fees. TD Canada Trust and National Bank register all mortgages as collateral charges by default.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-52", "category": "faq", "question": "What is a mortgage renewal?", "answer": "A mortgage renewal is the process of agreeing to a new term — and a new interest rate — at the end of your current mortgage term. Your outstanding balance stays the same; no new money is advanced. You choose new conditions (rate, term length, payment frequency) for the next period of your mortgage.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-53", "category": "faq", "question": "What is a rate hold?", "answer": "A rate hold lets you lock in today's rate with a lender for up to 120 days before your mortgage funds. If rates rise before your renewal date, you're protected. If rates fall, most lenders allow you to drop to the lower rate. Rate holds are free and non-binding.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-54", "category": "faq", "question": "What is a straight switch / straight transfer?", "answer": "A straight switch means transferring your mortgage to a new lender at renewal with the same outstanding balance, same remaining amortization, and no new funds advanced. That transfer is exempt from the prescribed MQR (Nov 21, 2024); B-20 overlays can still apply. Many new lenders cover legal and discharge fees.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-55", "category": "faq", "question": "What is blend-and-extend?", "answer": "Blend-and-extend lets you combine your existing rate with today's rate to create a new blended rate, then start a fresh full term. It avoids penalties but produces a rate above today's best available. A broker can model whether blending or breaking outright is better for your situation.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-56", "category": "faq", "question": "What is the best time of year to renew?", "answer": "There's no single best time of year — rate environment matters more than the calendar. The best time is whenever you're within 120 days of maturity and rates are competitive. Avoid auto-renewal at posted rates regardless of time of year.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-57", "category": "faq", "question": "What is the difference between a 3-year and 5-year fixed?", "answer": "A 3-year fixed offers slightly less payment certainty but allows you to return to market in 3 years — useful if rates are expected to fall or you anticipate life changes. A 5-year fixed maximizes predictability and is often the most competitively priced fixed product. The right choice depends on rate forecasts and your plans.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-58", "category": "faq", "question": "What is the posted rate vs. the discounted rate?", "answer": "The posted rate is the highest rate a lender publicly advertises. The discounted rate is what you actually receive after negotiation, through a broker, or by qualifying for a promotional offer. Always seek the discounted rate.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-59", "category": "faq", "question": "What's the difference between a mortgage term and amortization?", "answer": "Your term is the length of your current mortgage contract — typically 1 to 5 years. Amortization is the total time to pay off your entire mortgage (usually 25 years). At the end of each term, you must renew. Your amortization continues and decreases with each term.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-60", "category": "faq", "question": "When does a mortgage need to be renewed?", "answer": "At the end of each mortgage term — your maturity date. If you have a 5-year term, you renew every 5 years. If you have a 3-year term, every 3 years. Your amortization continues through multiple terms.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-faq/" }, { "id": "faq-61", "category": "guides", "question": "Can I consolidate debt or access equity at renewal without a full refinance?", "answer": "Increasing the balance at renewal is a refinance, not a straight switch — it triggers re-qualification including the stress test and may incur an appraisal and legal fee. For smaller equity needs, an add-on HELOC tranche or blend-and-extend can avoid full re-registration. Model debt consolidation and HELOC-vs-refinance before you sign.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-62", "category": "guides", "question": "Can I renew early to lock a lower rate?", "answer": "Yes, most lenders allow early renewal 120-180 days before maturity. If rates have dropped since you locked, a broker can refinance-blend or switch early and port the discharge timing. Compare your current penalty (if renewing before maturity) against 5-year savings — often break-even is 3-8 months when the rate gap is 0.50%+.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-63", "category": "guides", "question": "Can I switch lenders at renewal without penalty?", "answer": "Yes at maturity there is no penalty to switch. Uninsured straight switches are exempt from the prescribed MQR since November 21, 2024, though B-20 qualification and lender overlays still apply. You will sign a new commitment at the market rate — no prepayment charge from the outgoing lender if you close on the maturity date.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-64", "category": "guides", "question": "Do I need a lawyer to switch lenders at renewal?", "answer": "For a standard-charge switch the new lender's FCT/Title insurer typically handles the assignment without your own lawyer at no cost to you. Collateral charges do require a lawyer or notary (Quebec) to discharge and re-register — budget $650-$1,200 and 5-10 business days. Your broker confirms charge type from your title before you choose a path.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-65", "category": "guides", "question": "How does mortgage renewal work differently by province?", "answer": "Federal rules (B-20, MQR) are national, but legal mechanics differ: Quebec uses a notary and hypothec, Ontario has electronic land registry with ~$85 discharge registration plus lender admin fees, BC and Alberta have higher legal spreads for collateral re-registration, and Atlantic provinces may require additional title searches. See our provincial guides for Ontario, BC, Alberta, Quebec, Manitoba, Saskatchewan, Atlantic Canada and the Territories.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-66", "category": "guides", "question": "How much can I save by switching lenders at renewal?", "answer": "Even 0.25% saves about $7,500 in interest over five years on a $600,000 balance. A broker compares 30+ lenders at no cost to you and the new lender usually covers transfer legal fees on a standard charge.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-67", "category": "guides", "question": "Is a collateral-charge switch ever worth the legal cost?", "answer": "Yes. On a $500,000 balance at 4.84% vs 4.49% (0.35% gap), the 5-year interest savings are roughly $7,800 after accounting for $900 in legal/discharge fees. Run the switch-vs-stay and break-even calculators with your exact balance and remaining amortization — the math decides, not the fee alone.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-68", "category": "guides", "question": "Should I pay a lump sum or increase payments before renewing?", "answer": "If you have prepayment privileges (typically 15-20% lump sum and 15-20% payment increase per year), use them in the final year before renewal to reduce the renewal balance and improve your TDS. Check your commitment for privileges and avoid triggering a prepayment charge by staying within limits — model it with the prepayment calculator.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-69", "category": "guides", "question": "What happens if I miss my renewal date or do nothing?", "answer": "Your lender will auto-renew you into an open or short-term closed product at a non-competitive rate (often posted minus a small discount) or on a month-to-month basis until you sign. You keep the mortgage but overpay. Contact your lender or broker at least 30 days before maturity to avoid auto-renewal and preserve switching options.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-70", "category": "guides", "question": "What is the difference between a standard and collateral charge at renewal?", "answer": "A standard charge is registered for the mortgage amount and can be assigned to a new lender for $0. A collateral charge (TD, National Bank, Tangerine and others) is often registered up to 125% of value and cannot be assigned — you must pay $500-$1,200 to discharge and re-register when switching, but 5-year rate savings usually exceed that.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-71", "category": "guides", "question": "What is the stress test at renewal in 2026 — do I need to re-qualify?", "answer": "Insured renewals have never required the stress test when staying with the same lender and keeping the same balance and amortization. Since Nov 21, 2024 OSFI also exempts uninsured straight transfers (same balance, same or shorter amortization) from the prescribed MQR. You still re-qualify if you increase the balance, extend amortization, or add borrowers — use the stress test calculator to model it.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" }, { "id": "faq-72", "category": "guides", "question": "When should I start preparing for my mortgage renewal?", "answer": "Start 12 months before maturity to check credit and debts, and lock a rate hold 120 days out — you are protected if rates rise but can take a lower rate if they fall. Your broker will map the window to your maturity date and remind you when to act.", "source_url": "https://mortgagerenewalhub.ca/mortgage-renewal-guide/" } ] }