Mortgage renewal in Canada

A Canadian mortgage is renewed at the end of each term. This page covers the notice a federally regulated lender must send, the options the Financial Consumer Agency of Canada (FCAC) describes, and what switching lenders can cost.

The short version: The FCAC says you have to renew your mortgage at the end of each term unless you pay the balance in full.^[1] If your contract is with a federally regulated financial institution, such as a bank, the lender must give you a renewal statement at least 21 days before the end of the term.^[1] The FCAC says you do not have to renew with the same lender, and that you can start shopping around a few months before the term ends.^[1]

What this term means: A term is the time your mortgage contract is in effect. The FCAC says terms may range from a few months to 5 years or more, and you will likely need multiple terms to repay the mortgage.^[2] The amortization period is the time it takes to pay off the mortgage in full; see our guide to terms and amortization.

The renewal statement

The FCAC says a federally regulated lender must also notify you 21 days before the end of your term if it will not renew your mortgage.^[1] It says the lender will provide paper statements, or electronic statements if you consent.^[1]

A renewal statement must contain the balance or remaining principal at the renewal date, the interest rate, the payment frequency, the term, and any charges or fees that apply.^[1] It must also specify that the interest rate offered will not increase until your renewal date.^[1] You may receive a renewal contract at the same time.^[1] This page describes the rule as the FCAC states it for federally regulated institutions; it does not say what applies to other lenders.

The options at renewal

Option	What the FCAC says
Renew with your current lender	If you do not act, renewal may be automatic, and the FCAC says this may mean the rate and conditions are not the most favourable ones available to you. If the lender plans to renew automatically, it says so in the renewal statement.^[1] The FCAC says you can negotiate: you may qualify for a discounted rate lower than the rate quoted in your renewal letter, and it says to tell your lender about offers from other institutions or brokers, with proof if needed.^[1]
Move to another lender	The FCAC says you can move your mortgage to another lender, and the new lender must approve your application. The new lender may use different criteria than your original lender.^[1]
Pay off the balance	If you pay the balance at the end of your term, you do not need to renew.^[2]

What the FCAC says to review at renewal

The FCAC lists points to consider: whether your budget allows higher payments to pay off the mortgage sooner and save on interest, whether you want a different payment frequency, whether you are likely to make additional payments, your view of the services your current lender offers, whether you want to consolidate higher-interest debts into the mortgage, and whether you still need optional life, critical illness, disability or employment insurance.^[1] It says a federally regulated bank must offer and sell products and services appropriate for you, based on your circumstances and financial needs, and must tell you if it has assessed that a product or service is not appropriate.^[1]

What switching lenders can cost

Setup fees with the new lender, which may include discharge, registration, transfer or assignment fees from your current lender.^[1]
An appraisal fee to confirm your property’s value, if necessary, and other administration fees.^[1]
The FCAC says to ask whether the new lender will pay some or all of your costs to switch.^[1]
You may have to pay a new mortgage loan insurance premium when you switch if your loan amount increases or you extend the amortization period.^[1] If you already have mortgage loan insurance, the FCAC says to tell your new lender, which may help you avoid paying premiums twice; your existing lender can give you a certificate number.^[1]
If your mortgage is registered with a collateral charge, you may have to pay fees to remove it and register a new one. To remove the charge you must repay in full or transfer to the new lender all loan agreements it secures, such as car loans or lines of credit. Ask your lender, lawyer or notary whether you have a standard or collateral charge.^[1]

The terms page adds that you may owe a prepayment penalty if you renegotiate or pay off your mortgage before the end of the term, or pay more than your prepayment privileges, and that the amount depends on your mortgage type and contract.^[2] Our Interest Act guide covers prepayment rules.

How to verify this yourself

Read the two FCAC pages in the reference list; they are the source for each statement above. Then check your own renewal statement against the list of required contents, and read your mortgage contract for its prepayment terms and the type of charge registered. The FCAC regulates federally regulated institutions only; for a broker or a provincially regulated lender, start with our province-by-province matrix. Our published standard covers US loan originators only; there is no Canadian Register.

What this page does not cover

This page is general information, not financial or legal advice. It gives no rates and does not say which renewal option suits anyone. It does not cover the renewal statement rules for lenders the FCAC does not regulate, fees in your own contract, or tax effects. Rules and fees vary by lender and contract. The FCAC pages are dated 15 October 2025. This page was last reviewed 3 October 2026.

Your next step

Find the date your current term ends in your contract or latest statement. Start asking questions a few months before it, as the FCAC says, so you are not deciding from the renewal letter alone. Return to the Mortgage help library for related guides.