Renewal fairness check

Canadian Mortgage Renewal Guide

A Canadian mortgage renewal offer is fair only if the rate, payment, penalty wording, and lender restrictions compare well against current benchmark data. Do not accept a renewal just because it arrives before maturity.

The renewal offer is the bank’s opening position

A renewal letter is convenient, but convenience is not the same as a competitive offer. Before accepting, compare your quoted rate with the current FairRate benchmark, check whether the term fits your plans, and review whether switching lenders creates savings after fees.

The highest-intent FairRate use case is simple: upload or enter the renewal offer before signing. If the rate is above the benchmark range, the borrower has a clearer reason to negotiate or shop.

Renewal checklist before signing

  • Compare your offered rate against the Canadian benchmark range.
  • Check whether the term length matches your plans to move, refinance, or break early.
  • Review prepayment privileges and IRD penalty wording.
  • Ask whether switching lenders saves money after discharge, appraisal, and legal costs.
  • Keep a copy of the final commitment letter and payment schedule.

Frequently asked questions

Should I accept my bank’s mortgage renewal offer?

Not automatically. Renewal offers are often convenient, but you should compare the rate, term, payment impact, and penalty wording against current benchmark data before accepting.

When should I start shopping my renewal?

Many borrowers start 90 to 120 days before maturity because lenders and brokers may offer rate holds. Earlier comparison gives you more leverage and avoids a rushed decision.

Can switching lenders save money at renewal?

It can, but compare the rate savings with discharge fees, legal costs, appraisal requirements, and any restrictions in the new commitment letter.