A mortgage renewal is the process of renegotiating your mortgage terms when your current term expires. Most Canadian mortgages have five-year terms, meaning the majority of homeowners go through renewal multiple times over the life of their mortgage. Each renewal is an opportunity to improve your rate, change your term length, adjust your payment frequency, or restructure your mortgage entirely.
Why Shopping at Renewal Matters
The renewal offer your lender sends is a starting point, not a final answer. Lenders send posted rates knowing that a significant percentage of borrowers will sign without negotiating. A broker who accesses 50+ lenders can identify what the market is actually offering for your file and use that as leverage with your existing lender or to move your mortgage to a better option.
A rate difference of 0.25% on a $600,000 mortgage over a five-year term amounts to approximately $7,500 in additional interest. The effort required to compare renewal options is measured in hours, not weeks.
Renewal vs Refinance
Renewal is different from a mortgage refinance. A renewal simply renegotiates the rate and term on your existing balance at the end of the term. A refinance changes the mortgage amount, accesses equity, or restructures the loan before the term expires. Renewal is the simpler, lower-cost process. Refinancing at renewal is also possible and is worth considering if your financial goals or property equity have changed significantly during the term.
The Renewal Timeline: When to Start
The most common mistake Toronto homeowners make at renewal is starting too late. Lenders send renewal offers 30 to 45 days before the term expires. By that point, your options have narrowed. The right time to start reviewing renewal options is 120 days (four months) before your term ends.
At 120 days out, most lenders will allow you to lock in a rate, which protects you if rates rise before closing. It also gives you time to compare offers across multiple lenders, negotiate, and complete a lender switch if needed without creating a gap in your mortgage coverage.
When Renewal Is Also a Financial Reset Opportunity
Renewal is one of the few moments when switching lenders costs nothing in prepayment penalties. It is also an opportunity to restructure. Homeowners who have accumulated high-interest debt during the mortgage term can use renewal to roll that debt into the mortgage through a refinance at renewal, reducing total monthly obligations. Our debt consolidation page covers that structure in detail for homeowners considering it alongside renewal.
Switching Lenders at Renewal
Switching lenders at renewal does not require the same level of qualification as a new purchase mortgage, but it does require a new application and credit review. If your income or credit profile has changed since the original mortgage, we assess that upfront so the switch is only recommended when it is confirmed achievable.
Fixed vs Variable at Renewal: Choosing the Right Rate Type
Every renewal requires a choice between fixed and variable rate options. The right choice depends on your financial situation, risk tolerance, and the current rate environment.
A fixed rate locks in a set interest rate for the full term, giving payment certainty regardless of Bank of Canada rate movements. This suits homeowners who want predictable monthly costs or who are managing tight cash flow.
A variable rate fluctuates with the Bank of Canada’s prime rate. Variable rates have historically tracked below fixed rates over longer periods, but the payment variability requires comfort with potential increases. For homeowners with strong cash reserves who can absorb rate movements, variable rates often produce lower total interest over the full term.
We model both options against your specific balance and remaining amortization before renewal so the choice is based on actual projected costs, not general advice.
Using Renewal to Access Equity
For homeowners who want to access home equity at renewal, two options exist. A refinance at renewal increases the mortgage balance to access equity as a lump sum, with the new amount amortized over the remaining or extended period. A home equity line of credit can be set up alongside the renewed mortgage, providing revolving access to equity without increasing the mortgage balance. We assess which structure fits your goals and the lender’s renewal offer before recommending either.
Term Length at Renewal
Most homeowners default to a five-year fixed term at renewal because it is the most commonly advertised product. Shorter terms (one, two, or three years) carry different rates and suit homeowners who expect to sell, refinance, or whose personal circumstances are likely to change within the next few years. We advise on term length based on your current situation and projected plans rather than defaulting to the standard option.
How Everything Mortgages Handles Mortgage Renewals in Toronto
We begin the renewal review 120 days before your term expires. That window gives us time to compare live rates across our lender network, assess whether a lender switch makes sense for your file, and negotiate with your existing lender using competing offers as leverage.
For most Toronto homeowners, the renewal review involves four steps: confirming the remaining balance and amortization, pulling current rate offers from relevant lenders, comparing the total cost of staying versus switching (including any legal fees for a lender switch), and presenting the final options with a clear recommendation.
Switching lenders at renewal typically involves legal fees for mortgage discharge and registration, usually in the range of $500 to $1,500. Many lenders cover these costs as part of the switch incentive. We confirm the cost of switching versus staying before any recommendation is made.
What We Do for Mortgage Renewal Clients in Toronto
Rate Comparison Across 50+ Lenders
We pull current renewal rates from our full lender network and identify the best available rate for your remaining balance, credit profile, and preferred term. This comparison happens before any negotiation with your existing lender begins.
Negotiation with Your Existing Lender
We use competing offers as leverage to negotiate with your current lender. Lenders will frequently improve their posted renewal rate when presented with a credible alternative offer. Many homeowners achieve a better rate by staying than they would by switching, once negotiation is complete.
Lender Switch Management
If switching lenders produces a materially better outcome after accounting for legal fees, we manage the switch application, coordinate the discharge of the existing mortgage, and ensure the new mortgage is registered without a gap in coverage.
Renewal Plus Restructure
For homeowners who want to access equity, consolidate debt, or change their amortization at renewal, we assess the restructure options alongside the rate comparison and present both the renewal-only and renewal-plus-restructure scenarios side by side.
Why Toronto Homeowners Use Everything Mortgages for Mortgage Renewal
We Access 50+ Lenders
Your current lender has one set of renewal rates. We compare across 50+ lenders simultaneously and identify where your file receives the best terms. That reach is the core of what a renewal review through a broker delivers over a direct lender negotiation.
No Credit Pull on Initial Review
We do not pull your credit on the initial renewal review unless you specifically request it. We assess your current balance, term end date, and financial profile first, identify the best available options, and submit a credit application only when an approval path and lender are confirmed.
We Start Early
We begin the renewal review 120 days before your term expires. Most lenders send renewal offers 30 to 45 days out. Starting early means more options, more time to negotiate, and more time to complete a lender switch if needed.
Ways to Begin the Process of Renewing Your Mortgage
Ready to take the first step toward renewing your mortgage? Here’s how to get started:
Simple Online Form
Complete our online mortgage application with your current mortgage balance, your lender, your term end date, and your basic financial details. This gives us what we need to begin comparing renewal options and identifying the best available rate for your file.
Document Preparation Made Easy
For most renewal reviews, minimal documentation is needed at the initial stage. We may request a recent mortgage statement and confirmation of income. If you are switching lenders, a full application package is required and we provide a specific document list at that stage.
Individualized Advice
One of our mortgage brokers presents your renewal options side by side, your existing lender's best rate versus what is available through our lender network, with a full cost comparison including any switching costs. We make a clear recommendation and let you decide. No obligation, no cost.
