Mortgage renewal in Canada: the 21-day notice, your options and the costs of switching
Quick summary
If your mortgage is with a bank or other federally regulated lender, FCAC says the lender must send a renewal statement at least 21 days before your term ends. You can negotiate, shop around or switch. Try the mortgage renewal calculator.
Checked November 8, 2026. Main source: FCAC: Renewing your mortgage (modified Oct. 15, 2025). See all 2 sources.
The renewal notice
FCAC says a federally regulated lender, such as a bank, must send a renewal statement at least 21 days before the end of your term. If the lender will not renew, it must give you 21 days' notice.
Source: FCAC: Renewing your mortgage (modified Oct. 15, 2025).
Will my mortgage renew automatically?
It can. FCAC says that if you do not take action, your renewal may be automatic. If your lender plans to renew it automatically, the renewal statement will say so.
That matters because you may miss out on a better rate. At the end of each term you must either renew or pay off the balance.
Source: FCAC: Renewing your mortgage (modified Oct. 15, 2025).
What to have ready to renew or switch
- Your renewal statement. It must show your balance, interest rate, payment frequency, term and any fees.
- Proof of any competing offers. FCAC says you may need to show them.
- The type of charge on your mortgage, standard or collateral. Ask your lender, and allow a few months.
- A lawyer or notary may be needed to sign the registration papers if you switch lenders.
Source: FCAC: Renewing your mortgage (modified Oct. 15, 2025).
Renewing or paying off early, and penalties
A penalty can apply if you pay off, break or move your mortgage before the end of your term. FCAC says that after the term ends, you can make a lump-sum prepayment without a penalty.
FCAC says the penalty is usually the higher of three months of interest on what you still owe, or the interest rate differential (IRD). The IRD compares your interest at your rate and at a current rate. Ask your lender how it works out the penalty and what it would be on your date.
If the penalty would be large, FCAC suggests waiting until the end of the term to prepay. Some lenders also let you pay extra each year without a penalty. These prepayment privileges differ by lender.
Source: FCAC: Mortgage fees, prepayment penalties (modified Oct. 15, 2025).
Can I pay off my mortgage at renewal?
Yes. FCAC says that at the end of each term you must either renew or pay off the balance. Ask your lender for the payout amount and the date it applies.
Source: FCAC: Renewing your mortgage (modified Oct. 15, 2025).
Do I have to qualify again?
The FCAC page we read does not say whether your current lender checks your credit or income when you stay. It does say that if you switch, the new lender must approve your application and may use different rules. Ask your lender which applies to you.
Source: FCAC: Renewing your mortgage (modified Oct. 15, 2025).
Your options
- Negotiate. You may qualify for a lower rate than the one in the letter. Show any competing offers and have proof ready.
- Shop around. FCAC suggests starting a few months before the term ends, without waiting for the letter. Compare lenders and mortgage brokers.
- Switch lenders. You can move the mortgage for the same loan amount. The new lender must approve you and may use different rules.
Source: FCAC: Renewing your mortgage (modified Oct. 15, 2025).
Costs of switching
FCAC lists setup fees, plus discharge, registration, transfer or assignment fees from your current lender, an appraisal fee if needed and other administrative fees. You may also owe a new mortgage loan insurance premium if your loan amount rises or you extend your amortization. A collateral charge can add fees, so ask your lender, lawyer or notary which type you have.
Source: FCAC: Renewing your mortgage (modified Oct. 15, 2025).
Run your numbers
Questions people ask
How long before renewal must the lender send a statement?
At least 21 days before the end of your term for a federally regulated institution such as a bank, per FCAC.
Should I accept the first renewal offer?
FCAC says you may qualify for a lower rate than the one in the renewal letter, and suggests negotiating and shopping around.
Does my mortgage renew automatically?
It may. FCAC says renewal may be automatic if you take no action, and the renewal statement will say so if your lender plans it.
What do I need to renew my mortgage?
Your renewal statement and, if you are comparing offers, proof of those offers. If you switch, the new lender must approve you, and you may need a lawyer or notary to sign registration papers.
Can I renew my mortgage early?
You can ask your lender, but ending a term early can mean a penalty. FCAC says a penalty can apply if you break or move your mortgage before the end of your term. See our mortgage penalty calculator.
How is the penalty for renewing early worked out?
FCAC says it is usually the higher of three months of interest on what you owe or the interest rate differential. Ask your lender for the exact figure.
Can I pay off my mortgage at renewal without a penalty?
FCAC says you can make a lump-sum prepayment without a penalty after your term ends, and that you must renew or pay off the balance at the end of each term.
Do I have to qualify to renew my mortgage?
The FCAC page we read does not say if your current lender re-checks you. If you switch lenders, the new lender must approve you. Ask your lender.
Can I move my mortgage to another bank at renewal?
Yes. FCAC says you can switch lenders at renewal. The new lender must approve your application and may use different rules.
When should I start shopping?
FCAC suggests a few months before your term ends.
What does it cost to switch lenders?
FCAC lists setup, discharge, registration, transfer or assignment fees, a possible appraisal fee and other administrative fees.
Is there a stress test at renewal?
The FCAC page we read does not address it. Ask your lender, because the rules can depend on whether you stay or switch.