Renewal letter guide

Mortgage renewal letter Canada: what to check before signing

A renewal letter can look routine, but the rate and term you accept may affect your payments for years. Treat the letter as an offer to review, not a formality to sign blindly.

Have the letter in front of you?

Enter the quoted rate, term, province, lender, and balance. FairRate checks the offer against current benchmark context and estimates the rate-gap cost before you respond.

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The simple answer

A mortgage renewal letter should tell you the proposed new term, interest rate, payment, balance, maturity timing, and acceptance instructions. The missing piece is whether that offered rate is fair for your actual situation.

Seven numbers to check

Quoted rate

Compare it against current context for the same term, rate type, province, and mortgage structure.

Term length

A 3-year, 4-year, 5-year, and variable renewal can price differently and fit different plans.

Payment

Confirm the new payment and whether the increase matches the rate, balance, amortization, and frequency.

Balance

The larger the balance, the more a small rate gap can cost.

Deadline

Know when the lender needs an answer and whether you still have time to ask for review.

Fees and restrictions

Look for discharge fees, administration fees, prepayment limits, portability wording, and other conditions.

Switching friction

Collateral charges, HELOC links, appraisal, requalification, and legal/admin work can affect whether switching is practical.

What FairRate adds to the letter

Rate sites show advertised rates. FairRate checks whether your actual renewal offer appears fair before you sign. The goal is not to force a switch; it is to help you accept, negotiate, or compare with evidence.

Related tools

Letter decoder →Renewal gap calculator →Should I sign? →

Frequently asked questions

What is a mortgage renewal letter in Canada?

A mortgage renewal letter is a lender offer for a new mortgage term when your existing term is ending. It usually lists the renewal rate, term, payment, balance, maturity date, and instructions for accepting.

Should I sign my mortgage renewal letter immediately?

Not automatically. The letter is an offer, not proof that the quoted rate is the fairest available. Check the rate, term, payment, deadline, and switching friction before signing.

What should I compare before signing a renewal letter?

Compare the quoted rate against current context for the same term and rate type, convert any rate gap into dollars, review fees and restrictions, and decide whether to ask your lender for a review.

Is FairRate a broker or lender?

No. FairRate is an independent consumer-paid educational mortgage renewal rate-checking report. It does not arrange mortgages, sell leads, or receive lender commissions.

Check before you sign.

FairRate is paid by borrowers, not lenders. No lender commissions. No broker lead sales.

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Regulatory Disclaimer: FairRate Canada is an independent consumer-paid mortgage renewal rate-checking report. We are not a mortgage broker, lender, brokerage, or rate marketplace. We do not arrange mortgages, sell leads, collect lender commissions, or receive referral fees of any kind. We are not licensed under any provincial mortgage brokering legislation, including the Mortgage Brokerages, Lenders and Administrators Act (Ontario) or equivalent provincial statutes. Rate context uses public Canadian mortgage-rate data and Bank of Canada published data. Results do not represent a guaranteed rate, a rate offer, lender approval, or financial advice. Always consult a licensed mortgage professional before making any mortgage decision.