What changes at renewal?
When your mortgage term ends, the mortgage may be renewed into a new term if you and the lender proceed. The renewal offer should be reviewed as a new set of written terms, not just a continuation of the old payment.
The offer can include a new rate, term, payment assumptions, deadline, fees, restrictions, and acceptance instructions. Ask for clarification when the letter does not explain a material term clearly.
First-renewal checklist
Rate and structure
Confirm the exact percentage and whether the offer is fixed or variable.
Term
Confirm the term and whether other renewal options are available.
Payment assumptions
Check the scheduled payment, remaining amortization, balance, and payment frequency.
Penalty wording
Ask how an early-break penalty is calculated and request the applicable wording in writing.
Prepayment privileges
Review lump-sum privileges, payment-increase options, and restrictions.
Portability
Ask whether the mortgage can move with you and under what conditions.
Fees and conditions
Check discharge, transfer, appraisal, legal or notarial, title-insurance, registration, administration, promotional, cashback, collateral-charge, and other possible terms.
Deadline
Confirm when the offer expires and what happens if you do not respond.
How to compare carefully
Compare like with like. Match the same term and fixed or variable structure, then review the remaining amortization, mortgage characteristics, insurance status, payment assumptions, penalties, fees, restrictions, and the observation date and eligibility limits of any market context.
A public advertised rate is not proof that you qualify for it. A percentage alone does not prove that a first renewal offer is fair or unfair.
Questions to ask the lender
- Can you explain this renewal offer and any available renewal options?
- Can you provide the final rate, term, payment assumptions, and restrictions in writing?
- How is the early-break penalty calculated?
- What prepayment and payment-increase options apply?
- Is the mortgage portable, and under what conditions?
- Are there fees, promotional terms, cashback terms, collateral-charge terms, or other restrictions?
About rate-gap and savings claims
FairRate does not treat mortgage balance multiplied by a rate spread as an exact annual interest cost, five-year cost, or savings estimate. A scheduled-payment comparison should use the balance, rate, remaining amortization, and Canadian mortgage math, and still does not capture every fee, penalty, prepayment, timing difference, or switching cost.
FairRate role and limits
FairRate provides educational comparison context and optional consumer-paid reports. It is not a lender, mortgage broker, mortgage agent, brokerage, underwriter, law firm, or financial advisor. It does not guarantee another rate, approval, savings, or a particular accept, negotiate, or switch outcome.
Continue your review
Review the fields and written terms in a lender renewal letter.
Review the written offer, product terms, switching friction, and uncertainty before responding.
See the supported comparison contract, data handling, payment math, verdict rules, and limitations.
Frequently asked questions
What should I do the first time I renew my mortgage?
Read the written renewal offer, confirm the exact rate and term, review the scheduled payment and remaining amortization, ask about penalties, prepayment privileges, portability, fees, restrictions, and deadline, and compare only like-for-like options before deciding.
Is the first renewal offer automatically bad?
No. A first renewal offer is not automatically good or bad. The lender name, province, and quoted percentage alone do not prove fairness. Review the written product terms and any genuine like-for-like alternatives.
Can I ask my lender for other renewal options?
Yes. You can ask the lender to explain available renewal options and provide material terms in writing. FairRate does not promise that another option exists or that the lender will improve the offer.
Does FairRate check every renewal type?
No. FairRate Canada’s benchmark-backed free checker and paid benchmark reports currently support Canadian 5-year fixed renewal offers only. Variable-rate, 3-year, and other-term offers should not be forced against that reference.