Key takeaways
- A renewal offer is an offer, not a requirement.
- Compare features and total cost, not just the rate.
- Ask early. You'll have more time to decide.
When your mortgage term is ending, your lender will usually send a renewal offer. It can be tempting to sign and move on, but a renewal is a natural point to ask whether the offer still fits your life.
1. When does my renewal window open?
Lenders typically send renewal offers well before the term ends, and many borrowers can explore alternatives in the months leading up to it. Check your mortgage documents or ask your lender for your exact date.
2. How does this offer compare with other options?
A rate is only part of the picture. Compare term length, prepayment privileges, penalties and flexibility.
3. Has my situation changed?
A new job, more income, a growing family or plans to move can change what kind of mortgage suits you.
4. What would switching lenders involve?
Switching at renewal can mean a new application, documents and sometimes legal or appraisal steps. Since November 2024, borrowers with an uninsured mortgage at a federally regulated lender generally don't need to pass the stress test again for a straight switch (same balance and amortization) to a new federally regulated lender. Ask what applies to you.
5. What are the penalties if I break the mortgage?
If there's a chance you'll sell or refinance before the term ends, penalty calculations matter. See our guide on how penalties work.
6. Should I choose fixed or variable?
Fixed rates stay the same for the term; variable rates can change. Which suits you depends on your budget, comfort with change and plans. Read fixed vs. variable explained.
Sources and further reading
This article is general information, not personalized mortgage, legal, tax or financial advice. Rules, rates and eligibility change and depend on your circumstances and lender criteria. Confirm details before you make decisions.
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