Mortgage advice · British Columbia
Mortgage renewal: stay, switch or make a change?
You can renew with your current lender or apply to switch to another. Before signing, compare the payment, remaining repayment time, fees and flexibility—not just the rate. Our BC mortgage brokers help you review the offer and work out which option fits your plans.
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Should you renew, switch lenders or refinance?
Start with the same mortgage balance and remaining amortization so the offers are comparable. A longer repayment schedule can make a payment look better while increasing lifetime interest.
| Option | When to consider it | What to check |
|---|---|---|
| Renew with your lender | Your mortgage still fits and the lender’s revised offer is competitive. | Ask for an improved rate. Confirm prepayment privileges, portability and the new payment. |
| Switch lenders at renewal | Another lender offers a better overall fit for the existing mortgage. | You need the new lender’s approval. Itemize transfer costs and confirm which fees they cover. |
| Refinance | You need to borrow more or change the mortgage structure. | This is a different decision from a straight switch. Check qualification, equity, costs and total interest. |
Work through a real decision
A renewal comparison with the same payoff timeline
A homeowner owes $400,000 and has 20 years left to repay it. Compare two illustrative five-year fixed options, with $1,200 in switching costs paid in cash.
| What changes | Stay at 4.90% | Switch at 4.50% |
|---|---|---|
| Monthly principal + interest | $2,607 | $2,522 |
| Interest over five years | $89,344 | $81,842 |
| Balance after five years | $332,927 | $330,545 |
| Upfront switching costs | $0 | $1,200 |
The switch saves about $6,302 in interest after the assumed switching costs over five years. The payment falls by about $85 a month. A different fee, penalty or moving plan could change the decision.
Assumptions behind these numbers
Illustration, not offered rates or a client result. Monthly payments; Canadian semi-annual compounding; rates unchanged for 60 months; no extra payments. Taxes, insurance and other costs excluded. Figures rounded independently. Compare portability and prepayment terms separately.
When should you start looking?
Start a few months before your term ends. That leaves time to compare offers and prepare a switch if it makes sense. Ask when a rate hold expires and what happens if rates change before closing.
If your renewal date is close, tell us the date first. We can discuss what is practical in the time available. An early renewal offer also deserves a comparison: find out when the new rate starts and what you give up by accepting it.
How do you negotiate a mortgage renewal?
Ask your lender for its best written offer, then compare it with other options. Request the rate, term, payment, prepayment rights and any fees. A competing offer is more useful when it applies to your balance and the same repayment timeline.
A useful question is: ‘What will I pay over the next term, what balance will be left, and what happens if I move?’ We help you compare those answers rather than deciding from a headline rate.
Compare your renewal offers →What does switching mortgage lenders cost?
Ask for discharge, transfer, registration, legal and appraisal costs, plus written confirmation of any costs the new lender will pay. A collateral charge or linked secured debts can change what is involved.
A qualifying straight switch may be treated differently from a refinance under applicable stress-test rules. That does not remove the new lender’s credit and income review. Confirm eligibility with the lender before relying on an exception.
Understand mortgage transfers and switching rules →Make the first conversation useful
What to have handy
- Renewal date and your lender’s written offer
- Current balance, rate, payment and remaining amortization
- Income details and any changes to your work or debts
- Plans to move, renovate, repay early or borrow more
No offer yet? Bring your latest mortgage statement. You can start comparing before the renewal letter arrives.
Full mortgage document checklist →Download the renewal offer checklist (PDF) ↓
Send financial documents through our secure application when your broker asks for them.
Try the numbers first
What will your renewal payment look like?
Try a new rate against your remaining balance and repayment timeline. The rate is illustrative; this is a planning estimate, not a lender offer.
Compare renewal offers in detail →Compare your payment
What changes at renewal?
$405 more per month at the same balance and remaining amortization.
Illustrative rates, not offers. Principal and interest only; Canadian semi-annual compounding. Your existing payment may differ. Fees and lender terms are excluded.
Compare the full cost of staying or switching →Common questions
Mortgage renewal, explained.
General Canadian mortgage information. Lender rules and your circumstances determine the options available to you.
When should I start my mortgage renewal?
Start comparing a few months before the term ends. Around four months is a useful planning prompt, not a universal lender deadline or guaranteed rate-hold period. If renewal is close, ask promptly what can still be completed before maturity.
Can I switch lenders at renewal without paying a penalty?
A straight switch at maturity can avoid the usual break penalty because you are moving at the end of the term, not breaking mid-term. Legal or registration friction can still matter, so the all-in comparison should include those details.
Do I need to re-qualify to switch lenders at renewal?
A switch can involve qualification and lender review even when the balance is not increasing. The exact path depends on your file, the lender, and whether the transfer fits the straight-switch lane cleanly.
Does the stress test matter at renewal?
For an eligible uninsured straight switch at renewal between federally regulated lenders, OSFI does not prescribe its minimum qualifying rate when the loan amount and amortization do not increase. The receiving lender still underwrites the application. Ask which rules apply to your mortgage, especially if you are adding funds or extending repayment.
Should I accept an early renewal offer?
Compare the early offer with your existing contract and available alternatives. Ask when the new rate begins, whether there are costs or restrictions, and what happens to your remaining term. An early offer is not automatically better or worse than renewing at maturity.
How do I know whether renewal or refinance is the better move?
Renewal starts a new term on an existing mortgage. Adding funds or changing the remaining amortization needs a separate review and may be a refinance. Compare qualification, fees, interest and repayment progress before choosing. A lower payment alone does not establish a lower total cost.
A clearer decision starts here.
Tell us your situation. We’ll explain the next step and the options worth comparing.