Canada · Mortgage basics

Preparing for a Canadian mortgage renewal

A mortgage term is the period your contract is in effect. Amortization is the estimated time required to repay the mortgage. A five-year term ending does not normally mean the mortgage is fully repaid; a new term is generally required unless the balance is paid in full.

Start before the renewal notice

The Financial Consumer Agency of Canada recommends shopping around a few months before the end of the term rather than waiting for the renewal letter. Review offers from the current lender, other lenders, and mortgage brokers where appropriate.

Information to collect

Renewal date and projected principal balance.
Remaining amortization.
Proposed interest rate, term, and payment frequency.
Prepayment privileges and restrictions.
Fees for discharge, transfer, registration, appraisal, administration, or other changes.
Whether the mortgage uses a standard or collateral charge.

Compare more than the payment

A longer amortization can lower the required payment but increase total interest. Compare the rate, term, payment, remaining amortization, flexibility, and switching costs—not only the monthly amount.

Renewal statement

For a mortgage with a federally regulated financial institution, the lender must generally provide a renewal statement at least 21 days before the existing term ends. Review the balance, offered rate, payment frequency, term, and fees shown. Do not assume an automatic renewal provides the most suitable rate or conditions.

Use the appropriate calculator

The Payoff Path debt calculator assumes one fixed APR and payment throughout the estimate, so it cannot model a rate changing at renewal. Use an official mortgage calculator or lender-provided scenario tool with the renewal balance, remaining amortization, new rate, payment frequency, and fees.

Primary sources

Reviewed: July 2026 · General educational information, not mortgage or financial advice.