If your mortgage term is coming to an end, you may receive a mortgage renewal notice from your lender and be tempted to simply sign the offer and move on.
But mortgage renewal is an important financial decision.
Your renewal is an opportunity to review your interest rate, mortgage term, payment, amortization, lender, and overall financial situation. Depending on your circumstances, you may be better off negotiating with your existing lender, comparing other lenders, refinancing, or consolidating higher-interest debt.
For Ontario homeowners, understanding your options before signing a renewal can potentially save money and give you greater flexibility.
What Is a Mortgage Renewal?
A mortgage renewal happens when your current mortgage term ends and you still have a balance remaining.
Most Canadian mortgages are not completely paid off when the term ends. Instead, the mortgage is renewed for another term.
For example, suppose you originally obtained a five-year mortgage. At the end of those five years, you may still owe a substantial amount on your mortgage.
Your lender will typically provide renewal information before your current term expires.
However, you do not necessarily have to accept your existing lender’s renewal offer.
You can compare other mortgage options and, depending on your situation, consider transferring your mortgage to another lender or refinancing.
Why Mortgage Renewal Is Especially Important in 2026
Mortgage renewals have become one of the most important financial decisions facing Canadian homeowners.
According to the Canada Mortgage and Housing Corporation (CMHC), mortgage renewal activity dominated Canada’s mortgage market in 2025. CMHC also expects borrowers renewing after five-year terms to continue experiencing the effects of higher borrowing costs during the 2026–27 renewal cycle.
CMHC’s 2026 Mortgage Consumer Survey also found that many renewing borrowers were facing higher monthly mortgage payments, creating additional financial pressure for some households.
That means homeowners should avoid treating renewal as an automatic paperwork exercise.
Your renewal is a financial planning opportunity.
Should You Automatically Renew With Your Current Lender?
Not necessarily.
Your current lender may send you a renewal offer because it already has your mortgage.
That does not mean the offer is automatically the best option available to you.
Before accepting it, consider:
- Is the interest rate competitive?
- Is the mortgage term appropriate for your situation?
- Do you need a different amortization?
- Has your income changed?
- Have your debts increased or decreased?
- Has your credit profile changed?
- Do you need to access home equity?
- Are you considering renovations?
- Are you planning to purchase an investment property?
- Do you have high-interest credit-card or personal-loan debt?
- Are you thinking about selling your home?
- Would another lender offer better terms?
Comparing your options before renewal can help you make a more informed decision.
Mortgage Renewal vs. Mortgage Refinancing
These terms are often confused, but they are not the same.
Mortgage Renewal
A renewal generally means continuing your mortgage after your current term expires.
You may negotiate a new:
- interest rate
- mortgage term
- payment schedule
- product
Depending on the circumstances, you may remain with your current lender or switch lenders.
Mortgage Refinancing
Refinancing generally involves replacing your existing mortgage with new financing.
Homeowners may refinance to:
- access home equity
- consolidate debt
- finance renovations
- change mortgage structure
- fund an investment
- address changing financial circumstances
If you need to borrow additional money beyond simply renewing your existing mortgage, refinancing may be worth discussing.
When Should You Start Preparing for Mortgage Renewal?
Don’t wait until the last minute.
A good approach is to start reviewing your mortgage several months before the maturity date.
This gives you time to:
- Review your existing mortgage.
- Check your current financial situation.
- Determine whether you need additional funds.
- Review your credit.
- Compare available mortgage options.
- Speak with a mortgage professional.
- Understand any penalties or costs associated with changing lenders.
- Decide whether renewal, transfer, or refinancing makes the most sense.
The earlier you start, the more time you have to make an informed decision.
What Documents May You Need?
Depending on your situation and the lender, you may be asked for documents such as:
- Identification
- Proof of income
- Employment information
- Recent pay statements
- T4s or Notices of Assessment
- Bank statements
- Existing mortgage statement
- Details of other debts
- Property information
- Rental income documentation, where applicable
Self-employed borrowers or borrowers applying for alternative financing may need additional documentation.
A mortgage professional can tell you what documentation is appropriate for your specific application.
What If Your Mortgage Payment Is Going Up?
One of the biggest concerns for homeowners at renewal is the possibility of a higher payment.
If your new mortgage rate is higher than your previous rate, your monthly payment may increase.
Before renewal, calculate what the new payment could mean for your household budget.
Look at:
- Mortgage payment
- Property taxes
- Home insurance
- Utilities
- Car payments
- Credit cards
- Lines of credit
- Personal loans
- Other recurring expenses
If the new payment creates financial pressure, don’t wait until after renewal to explore your options.
There may be strategies worth considering depending on your circumstances.
Can You Refinance at Mortgage Renewal?
Potentially, yes.
Mortgage renewal can be an appropriate time to review whether refinancing makes sense.
For example, a homeowner might consider refinancing to consolidate higher-interest debts.
Example
Imagine you have:
- $450,000 remaining on your mortgage
- $20,000 in credit-card debt
- $15,000 in personal loans
Instead of managing several separate debts with different payments and interest rates, you may be able to explore refinancing that incorporates eligible debts into a new mortgage structure.
However, refinancing isn’t automatically the right solution.
You should consider:
- New interest rate
- Mortgage term
- Amortization
- Legal/appraisal costs
- Potential penalties
- Total interest paid
- Your long-term financial goals
The objective should not simply be to reduce the monthly payment.
The objective should be to improve your overall financial position.
What If You Have Bad Credit at Renewal?
A changing credit situation does not necessarily mean you have no options.
If your credit score has declined, your income has changed, or you have accumulated significant debt, your renewal options may be different from those available to a borrower with a strong credit profile.
Depending on your circumstances, alternative lending solutions may be worth discussing.
Your options can depend on:
- Credit history
- Income
- Property value
- Existing mortgage balance
- Equity
- Debt levels
- Employment
- Payment history
If you are concerned about qualifying for your next mortgage, start the conversation early.
What If You’re Self-Employed?
Self-employed homeowners sometimes have more complicated income documentation.
For example, your business income may not appear the same way as the income of a salaried employee.
A lender may consider different documentation depending on the application and lending program.
If you are self-employed and approaching renewal, don’t assume your current lender is your only option.
A mortgage professional can help you understand which financing options may be available based on your financial profile.
Should You Switch Mortgage Lenders at Renewal?
Switching lenders can make sense in some situations.
Potential reasons include:
- Better mortgage terms
- Different product features
- Better rate
- Greater flexibility
- Access to refinancing
- Different lending criteria
- Better fit for your financial goals
But the lowest advertised interest rate isn’t necessarily the best mortgage.
Consider the complete mortgage package, including:
- Rate
- Prepayment privileges
- Penalties
- Portability
- Restrictions
- Term
- Amortization
- Fees
- Overall flexibility
What Should You Ask Before Renewing?
Before signing your renewal, ask:
1. What is my new interest rate?
Understand whether it is fixed or variable and how it compares with other available options.
2. What will my monthly payment be?
Don’t look only at the interest rate. Calculate the actual payment.
3. What happens to my amortization?
Changing your amortization can significantly affect your total interest costs.
4. What are my prepayment privileges?
If you expect to make extra payments, understand the rules.
5. What happens if I sell my home?
Ask about portability and potential penalties.
6. Can I access additional funds?
If you need money for renovations, debt consolidation or another purpose, ask whether refinancing or another product may be appropriate.
7. What other lenders could I qualify with?
This is where comparing the broader mortgage market can be useful.
Mortgage Renewal Checklist
Before your mortgage renewal date:
- Review your current mortgage statement.
- Confirm your maturity date.
- Review your current interest rate.
- Calculate your outstanding mortgage balance.
- Review your household income.
- Review your outstanding debts.
- Check your credit profile.
- Estimate your future mortgage payment.
- Decide whether you need additional financing.
- Compare renewal options.
- Consider refinancing if appropriate.
- Review prepayment privileges.
- Review penalties and restrictions.
- Get professional advice before making a final decision.
Mortgage Renewal in Vaughan and Across Ontario
If you’re a homeowner in Vaughan, Toronto, Mississauga, Brampton, Markham, Richmond Hill or elsewhere in Ontario, your mortgage renewal is an opportunity to review your financing rather than simply accept the first offer you receive.
Kulbhushan Narang is a Licensed Mortgage Agent, Level 2, serving clients across Ontario with residential, investment, alternative and commercial mortgage solutions.
His services include mortgage refinancing, rental investment financing, alternative and private mortgages, construction financing, land financing and commercial lending.
The right solution depends on your financial circumstances, property and long-term goals.
Frequently Asked Questions
How early should I start preparing for mortgage renewal?
It is generally wise to start reviewing your options several months before your mortgage maturity date. This gives you time to compare options and address any documentation or qualification issues.
Can I switch lenders when my mortgage is up for renewal?
In many cases, yes. Your renewal date can be an opportunity to compare your existing lender’s offer with alternatives from other lenders.
Is mortgage renewal the same as refinancing?
No. Renewal generally continues your mortgage after the term ends, while refinancing usually involves replacing the existing mortgage and potentially borrowing additional funds.
Can I refinance when my mortgage comes up for renewal?
Potentially. Your eligibility will depend on factors such as income, credit, property value, existing mortgage balance and the lender’s requirements.
What if I can’t afford my new mortgage payment?
Don’t wait until you’re struggling to make payments. Speak with your lender or a qualified mortgage professional as early as possible to understand what options may be available.
Should I use a mortgage broker for renewal?
A mortgage broker can help you compare available financing options and assess whether staying with your current lender, switching lenders or refinancing may make sense for your circumstances.
Ready for Your Mortgage Renewal?
Don’t simply sign your renewal offer without reviewing your options.
If your mortgage is coming up for renewal in Ontario, let’s review your situation and determine whether renewing, switching lenders or refinancing may be appropriate.
Get a Mortgage Renewal Assessment
Kulbhushan Narang
Licensed Mortgage Agent, Level 2
Orbis Mortgage Group
Vaughan, Ontario
Call: 905-581-8188
Mortgage products, rates, qualification requirements and lender policies vary. This article is for general educational purposes and does not constitute financial, mortgage, legal or tax advice. Your eligibility and available options depend on your individual circumstances.
