When your mortgage term ends, compare your lender's renewal offer with the alternatives before signing. Staying may be convenient; switching or refinancing can change the costs and repayment terms you live with for several years. Compare rates, fees and the debt remaining. FCAC renewal guidance
If you bought in PEI, Nova Scotia or New Brunswick several years ago, your circumstances may have changed. Tell your mortgage professional about a planned move or a change in income before asking for a quote, so the next contract allows for the decisions you expect during its term.
Decide what you need the new term to do
Pull out your current statement and note the balance, renewal date and remaining amortization. The term is the length of your mortgage contract; amortization is the repayment period used to calculate the payments. A five-year term can leave debt outstanding. Terms and amortization
Then decide whether you want to continue repaying the existing balance or change the borrowing arrangement. Adding renovation money, for example, asks a different question from obtaining a better renewal rate.
| Option | What you are considering | What to ask |
|---|---|---|
| Stay | A new term with the current lender | Can the offer improve, and are the features still suitable? |
| Switch | Move the existing mortgage to another lender | What approval and transfer costs apply? |
| Refinance | Change the borrowing, potentially adding funds or extending repayment | What will the new loan cost over time, and what equity is required? |
Refinancing against home equity means applying for a new borrowing arrangement. Get a full proposal that shows the resulting mortgage balance and repayment period before treating it as a renewal alternative. Borrowing against home equity
Compare quotes on the same repayment schedule
Ask each provider to quote the same balance and remaining amortization first. Extending repayment can lower the monthly payment while increasing total interest, so a lower payment alone does not establish that the mortgage is cheaper. Amortization and interest costs
For an illustrative comparison, suppose one lender quotes $1,900 per month and another quotes $1,850 for the same remaining repayment period. If the switch has $1,000 of costs you must pay, the $50 monthly difference takes 20 months to cover them. Over a 60-month term, it produces $2,000 of cash-flow savings after the assumed fee.
The quoted amounts in this example are hypothetical and do not represent current mortgage offers. Ask for the balance remaining at the end of each term too. Different interest rates or payment structures can change how much principal you repay, so the payment comparison is only part of the calculation.
Can you switch without the prescribed mortgage stress test?
An eligible uninsured straight switch at renewal, between federally regulated financial institutions, is exempt from the prescribed minimum qualifying rate set by OSFI, Canada’s federal banking regulator. It applies to a standalone, amortizing mortgage outside a combined loan plan, without extending the remaining amortization or taking out equity. The mortgage must not allow you to reborrow principal you have repaid. The rule permits up to $3,000 to be added for related transaction costs. OSFI straight-switch rule
That exemption still requires the new lender to assess your ability to repay. It does not cover every switch or a refinance, and lenders retain their own approval criteria. Have the receiving lender confirm whether your mortgage fits the rule. OSFI underwriting requirements
Check the costs and restrictions before choosing
Ask for written estimates of transfer or discharge fees and legal or appraisal costs, including any amount the new lender will cover. A mortgage registered as a collateral charge can secure other borrowing, so a linked line of credit also needs attention when switching. Switching lenders at renewal
Read the proposed contract for its prepayment privileges and early-exit penalty terms. Portability, the option to move an existing mortgage to another property subject to approval, may matter if you expect to sell. Get the restrictions in writing. Mortgage flexibility, Prepayment penalties
Begin comparing a few months before renewal so there is time to collect documents and arrange a transfer. Federally regulated lenders must provide a renewal statement at least 21 days before the term ends, but that notice need not be your starting point. Renewal timing
When you send BRX your renewal date and current mortgage details, ask for a comparison that includes the balance remaining at term end and the costs of changing lenders. That makes the recommendation easier to assess before you commit.