Mortgage renewal in Ontario: a free practical guide

When should you start?

Start early enough that you are choosing, not rushing.

• •Four to six months before maturity is a comfortable window for most homeowners. You have time to compare options, gather documents, and decide whether to stay or switch.
• •Your current lender usually sends a renewal statement about 21 days before maturity. That letter is useful, but waiting for it leaves you with almost no time to shop. Treat it as confirmation of what your lender is offering, not the first time you think about renewal.
• •Many lenders will hold a rate for a stretch of time once you apply. Starting earlier often means you can lock in a path without feeling cornered in the last week.

If the bank already called you directly to renew, that is common. Easier is not always better. An automatic renewal offer is often not the most competitive option on the table, and once you sign it is usually too late to compare.

How to read your bank's renewal letter

Open the letter (or portal notice) and look past the headline number. Pull out these pieces:

1. 1.The offered rate and rate type (fixed or variable). Note whether it is the "posted" style offer or a discounted offer. Either way, treat it as a starting point.
2. 2.Term length. Two, three, or five years (and other lengths) change how long you are locked in and how the break penalty works later.
3. 3.Payment amount and payment frequency. Confirm it matches what you expect for the amortization they are using.
4. 4.Prepayment privileges. How much can you pay down each year without a penalty? Can you double up payments? This matters more than many people expect.
5. 5.Any product add-ons. Some offers bundle a line of credit or other features. Some do not. If you might want equity access later, ask whether a HELOC can be built in at renewal. Many lenders only allow that when a mortgage is set up or renewed.
6. 6.Deadlines and how to accept. Note the reply date. Signing early can close the door on a better comparison.

Write those details on one page. That becomes the "bank offer" we (or any broker) will compare against other lenders.

Rate vs structure: what actually matters

Rate gets the attention. Structure often decides whether the mortgage still fits your life two years from now.

When we review a renewal, we look at:

• •Term: shorter vs longer, based on your plans to move, renovate, or refinance.
• •Prepayment options: room to pay down faster when cash flow allows.
• •Penalty language: what it would cost to break early if plans change.
• •Whether a line of credit should be built in: it is much easier to set up at renewal than mid-term with many lenders.
• •Amortization: extending it can lower the payment, but it can also add years of interest. That trade-off should be conscious, not automatic.

"Can you beat what my bank is offering?" is the right question. The complete answer includes structure, not only the rate line on the letter.

Checklist: switching lenders at renewal

At maturity, you can usually stay or switch without a break penalty, because the term has ended. A switch is not automatically better, but it is the moment of maximum choice.

Use this checklist:

• Note your maturity date and start the review 4 to 6 months out
• Save your renewal letter or portal offer once it arrives
• List your goals for the next term (lower payment pressure, renovate, build in a HELOC, simplify debt, stay flexible)
• Confirm your current balance, remaining amortization, and property tax setup
• Gather the documents list below
• Compare your bank's offer against other lenders on rate and structure
• Ask who pays typical switch costs (legal, appraisal) if you move
• Decide stay vs switch with the full picture, then complete the paperwork before maturity

If your bank already declined a change you asked for (for example, adding funds or a different product), that is one lender's policy, not the final answer. Other lenders work with different rules.

Documents you will usually need

For a renewal review or a switch, we typically ask for:

• •Two pieces of ID
• •Proof of income (T4s and pay stubs, or T1 Generals and business financials if you are self-employed)
• •A recent property tax bill
• •Your consent for a credit check
• •Your current mortgage details and the renewal offer when you have it

We send a clear list and a secure link to upload. Your lender may ask for more depending on the file.

Does shopping lenders hurt your credit?

A common worry: "Will this hurt my credit?"

We do one credit check, and we only submit your file to the lenders that fit it, rather than applying everywhere. A single inquiry usually has a small, temporary effect on your score. Shopping around with a broker is not the same as filing separate applications at every bank on the street.

If you are only doing an early, no-pressure conversation about timing and goals, say so up front. We can often start with a high-level review before any hard check.

A simple renewal timeline

Fixed or variable at renewal?

It comes down to your plans and how much payment movement you can live with. We walk through both side by side, including what each could cost if you need to break early. Structure matters more than a small rate difference. This guide will not forecast rates. No one can promise where rates will go.

Can we help you with this?

If your renewal is coming up, or the bank already called, we are happy to put your letter beside options from 30+ lenders and walk through the structure with you.