The simple answer
Your renewal rate may be fair if it is close to current benchmark context for a similar mortgage. It may deserve a closer look if it sits meaningfully above that context, if your payment is jumping sharply, if the lender will not explain the pricing, or if you have not compared the offer before the deadline.
A rate cannot be judged in isolation. A 4.79% offer can be strong in one environment and weak in another. A 3-year fixed rate is not directly comparable to a 5-year fixed rate. A conventional mortgage may price differently from an insured one. A clean renewal may be easier to compare than a renewal involving a HELOC, collateral charge, new borrowing, low appraisal, or high loan-to-value ratio.
What lenders know that borrowers often do not
Your current lender knows renewal is a friction point. Staying is easy. Switching requires paperwork, timing, documents, and sometimes requalification. That does not mean your lender is acting unfairly. It means the first renewal letter should be treated as a starting point, not a conclusion.
The borrower’s advantage is evidence. When you know the rate gap and the estimated dollar cost, the conversation changes from “Can you do better?” to “This offer appears above current context for my term and balance. Can you review it before I accept?”
The five checks before signing
1. Compare the same term
A 3-year fixed renewal should be compared against 3-year fixed context. A 5-year fixed should be compared against 5-year fixed context. Mixing terms creates false confidence.
2. Convert the rate gap into dollars
A 0.25% gap can look small until it is applied to a CA$450,000, CA$650,000, or CA$900,000 balance over multiple years. Dollar cost is easier to act on than basis points.
3. Check the structure
HELOC segments, collateral charges, low appraisal values, high loan-to-value ratios, and new borrowing can change whether switching is realistic. Structure can matter as much as rate.
4. Consider the deadline
The best time to review a renewal offer is before you sign. A rushed deadline can reduce options, but it should not stop you from asking the lender for a review.
5. Decide with evidence
The result may support accepting, negotiating, or comparing alternatives. The goal is not to force a switch; it is to avoid signing blindly.
How to estimate rate-gap cost
A first-pass estimate is simple: mortgage balance multiplied by the rate difference. For example, a 0.30 percentage point gap on a CA$600,000 mortgage is roughly CA$1,800 per year before amortization details, compounding, fees, penalties, or payment frequency. Over a five-year term, that simple estimate becomes roughly CA$9,000.
This is not a full amortization schedule and it is not a guarantee of savings. It is a practical signal. When the possible cost gap is large relative to the effort of asking for a review, the renewal deserves attention.
Use the free Mortgage Renewal Gap Calculator when you already have a quoted rate and a comparison rate.
When your renewal rate is probably worth questioning
- Your payment is jumping sharply and the lender has not explained the pricing.
- You received only one offer and no competing context.
- The offer is for a longer term than you originally wanted.
- The quoted rate appears above benchmark context for your term and rate type.
- You have enough time before maturity to ask for a review.
- Your balance is large enough that even a small rate gap becomes meaningful.
When accepting may still be reasonable
Fair does not always mean lowest. Accepting may be reasonable when the offer is close to benchmark, the deadline is immediate, switching costs would erase savings, your mortgage structure is complex, your current lender is offering useful flexibility, or your priority is certainty rather than squeezing every basis point.
The key is knowing why you are accepting. Accepting because the rate checks out is different from accepting because the letter arrived and the deadline felt stressful.
Bank-specific renewal offer pages
If your offer came from a major Canadian lender, start with the matching page and then run the checker with your actual numbers.
What to say to your lender
“I’m reviewing the renewal offer before signing. The quoted rate is [rate] for [term]. Based on current benchmark context, I’d like to know whether this rate can be reviewed or improved before I accept. Please confirm whether there is a better renewal option available for my file, and whether another term is priced more competitively.”
Keep the wording factual. Do not claim you are guaranteed another rate. Ask for a review, document the response, and compare the decision before the deadline.
Related FairRate tools
Frequently asked questions
How do I know if my mortgage renewal rate is fair?
Compare the offered rate against current benchmark context for the same term, rate type, province, balance, and mortgage situation. Then estimate the dollar cost of any rate gap before deciding whether to accept, negotiate, or compare alternatives.
Should I accept my bank’s first renewal offer?
Not automatically. A renewal letter is an offer from your current lender, not proof that the rate is the strongest available. It may still be fair, but it is worth checking before signing.
Can I negotiate a mortgage renewal rate in Canada?
Many borrowers can ask their lender to review a renewal offer. The strongest request is factual: show the quoted rate, the comparable benchmark context, the rate-gap cost, and ask whether the lender can improve the offer before you accept.
Is FairRate a mortgage broker?
No. FairRate is not a mortgage broker, lender, brokerage, law firm, or financial advisor. It is an independent consumer-paid educational rate-checking report. FairRate does not arrange mortgages or sell borrower information to lenders.
What should I do before signing a mortgage renewal letter?
Read the full letter, confirm the rate, term, rate type, payment, balance, renewal deadline, prepayment terms, and switching restrictions. Then compare the rate and estimate the rate-gap cost before signing.