Key takeaways
- Start about 120 days before your maturity date, when many lenders will hold a rate for you.
- At maturity you can usually switch lenders without a prepayment penalty.
- Since November 2024, a straight switch of an uninsured mortgage to a new lender no longer requires passing the stress test.
- Compare the full terms, not only the rate: prepayment privileges, penalties and portability all matter.
- If you do nothing, some mortgages roll into a short or open term at a higher rate.
For many Ontario homeowners, renewal is the moment their lender's letter arrives and they sign it. That is convenient, but it is also the one time in your mortgage term when you can usually move to another lender without a prepayment penalty. A little planning gives you time to compare.
This checklist walks through what to do in the four months before your maturity date, whether you live in Mississauga, Brampton or anywhere else in Ontario.
Why compare instead of auto-renewing?
Your current lender's renewal offer may be competitive, or it may not. Lenders often compete harder for new clients than for existing ones. Comparing lets you either switch or go back to your lender with a clearer picture.
Renewal is also a good time to review the mortgage itself: your amortization, payment frequency, whether fixed or variable suits you now, and whether you want to use home equity for renovations or to consolidate debt.
120 days out: find your dates and documents
- Find your maturity date on your latest mortgage statement or your lender's online banking.
- Check your balance and remaining amortization, so you know what you are renewing.
- Note your charge type. A standard charge is usually simpler to switch than a collateral charge, which may involve legal costs.
- Gather documents: recent pay stubs or income documents, your property tax bill and a recent mortgage statement.
Many lenders allow a rate hold around 120 days ahead, which can protect you if rates rise while you compare.
60 to 90 days out: compare offers
Look at offers side by side. The rate matters, but so do the terms you will live with for the next few years:
| What to compare | Why it matters |
|---|---|
| Rate and term | Sets your payment and how long it is locked in. |
| Prepayment privileges | How much extra you can pay each year without penalty. |
| Penalty method | Fixed-rate penalties can be calculated differently by each lender if you break the term early. |
| Portability | Whether you can take the mortgage with you if you move. |
| Switching costs | Legal or appraisal costs, and whether the new lender covers them. |
Do I have to pass the stress test to switch lenders?
For a straight switch, meaning the same balance and amortization moved to a new lender at renewal, federal regulators removed the stress test requirement for uninsured mortgages in November 2024. Insured mortgages that are switched also generally do not need to requalify. If you add funds or extend the amortization, it becomes a refinance and normal qualifying rules apply.
Lenders still review your file, including income, credit and the property, so approval is not automatic.
21 days out: read the renewal statement
Federally regulated lenders, such as banks, must send you a renewal statement before your term ends, generally at least 21 days ahead. Read it carefully, confirm the rate, term and payment, and check what happens if you do not respond. Some mortgages renew automatically into a short or open term, which can cost more.
Your quick renewal checklist
- Find your maturity date and balance (120 days out).
- Decide what you want: lower payment, faster payoff, flexibility, or access to equity.
- Request a rate hold and compare at least two or three options.
- Compare full terms, not only the rate.
- Sign your chosen offer before your maturity date.
Frequently asked questions
When should I start shopping for my mortgage renewal?
Is there a penalty to switch lenders at renewal?
Can I add funds when I renew?
I live outside Mississauga. Can you help with my renewal?
Sources
- Renewing your mortgage – Financial Consumer Agency of Canada
- OSFI scraps stress test rules for borrowers switching lenders at renewal – Canadian Mortgage Professional
Sanmeet Singh
I am licensed in Ontario and help buyers and homeowners anywhere in the province, from my Mississauga office or by phone and video, in English, Hindi and Punjabi. More about me →