Mortgage Guide
The renewal timeline in the order it happens: the legal notice, what the renewal statement must contain, what happens if you do nothing, and what changes if you move to another lender.
Most people find out their term is ending when a letter arrives from the lender. By then the clock is already short. This guide walks through what happens at mortgage renewal in the order it actually unfolds: the notice, the statement, the decision, and what changes if you move the mortgage somewhere else. The rules come from the Financial Consumer Agency of Canada (FCAC), OSFI and the Department of Finance.
A Canadian mortgage has two clocks. The amortization is the full time it would take to pay the loan to zero, often 25 or 30 years. The term is the shorter contract you sign for a set rate and set conditions, commonly a few years. When the term ends, you still owe the remaining balance, so you need a new term. That moment is renewal.
At renewal you are not applying for a new loan in the usual sense. You are agreeing to new contract terms on money you already owe. That is why the rules, the costs and the paperwork are different from a purchase or a refinance. If you want to borrow more or pull equity out, that is a refinance, which works differently; our refinance vs HELOC comparison covers that path.
Here is the sequence for a lender regulated by the federal government (the banks). Provincially regulated lenders, such as BC credit unions, follow their own rules, so ask them directly about notice timing.
| When | What happens | Who sets the rule |
|---|---|---|
| Months before maturity | Some lenders send an offer earlier than they have to. That is lender practice, not a legal deadline. | Lender |
| At least 21 days before the term ends | The lender must give you renewal information, or tell you it will not renew. | Federal law, as explained by FCAC |
| Before the maturity date | You sign the renewal, accept a different offer, or arrange a switch to another lender. | You |
| Maturity date | The new term starts. If you did nothing, the renewal may be automatic, depending on what your statement says. | Your contract and statement |
The 21-day figure is a minimum. It is not much time to compare offers, gather documents and get approved somewhere else. Treat the date the letter arrives as the latest possible start, not the starting gun.
Part of what happens at mortgage renewal, if you decide to move, is a fresh application. It can also mean an appraisal and legal or notary work to move the charge. If you start inside the last three weeks, you can run out of time and end up signing whatever is in front of you. Starting a few months ahead keeps every option open, including staying put if your lender's offer turns out to be fair.
FCAC explains that a federally regulated lender must disclose renewal information at least 21 days before the end of your term, and that the disclosure must contain the same information you get when you apply for a new mortgage. On its renewal page, FCAC lists what the renewal statement includes:
Read the statement line by line. Check the balance against your last annual statement. Check the term length; if the default offer is a short term you didn't ask for, you can ask for something else. Check the payment frequency, because a change from accelerated to regular payments quietly lengthens how long it takes to pay off the loan.
Lenders are not obliged to offer you a new term. FCAC says a federally regulated lender must also notify you at least 21 days before the end of your term if it won't renew. If that happens, you need a replacement lender before maturity. Call a broker or another lender the same day the letter arrives.
FCAC warns that if you don't take action, the renewal of your mortgage term may be automatic. Whether it is, and on what terms, is spelled out in your renewal statement. An automatic renewal is legal, but it means you accepted an offer you never compared. Signing a renewal is quick; undoing it means breaking a contract, which usually costs a prepayment charge. Our guide on what happens if you break your mortgage early explains how those charges are calculated.
You don't have to renew with the same lender. FCAC states plainly that you can move your mortgage to another lender if its terms and conditions are better for you. The question is whether the savings outweigh the cost and effort of moving.
FCAC's page on mortgage discharges adds that some lenders charge assignment fees when you change lenders and suggests asking the new lender whether it will cover the discharge costs. Some do, at least in part. Get that in writing before you commit.
Usually not at the stress-test rate, as long as the switch is a straight switch. Since November 21, 2024, OSFI no longer requires federally regulated lenders to apply its minimum qualifying rate to an uninsured straight switch, defined as moving the existing balance with no increase to the remaining amortization or the loan amount. OSFI allows the balance to rise by up to $3,000 to cover transaction costs such as penalties or fees. For insured mortgages, the Department of Finance says the Canadian Mortgage Charter lets borrowers switch lenders at renewal without another stress test. The new lender still checks your income, credit and the property under its normal underwriting. Our mortgage stress test guide covers both exemptions in detail.
Add money to the loan, or stretch the amortization, and it is no longer a straight switch. You would then be qualified as a new borrower.
If you would like a second pair of eyes on a renewal offer, a renewal review with our Richmond brokerage lays your lender's terms beside what else is available. Blue Sky Mortgage Group is a licensed BCFSA mortgage brokerage in Richmond.
A federally regulated lender must give you renewal information at least 21 days before your term ends, according to FCAC. It must also tell you at least 21 days ahead if it won't renew. Provincially regulated lenders, such as BC credit unions, follow their own rules.
It can. FCAC says that if you don't take action, the renewal of your mortgage term may be automatic. Your renewal statement will say whether automatic renewal applies and on what terms.
The balance at the renewal date, the interest rate, the payment frequency, the term length, any charges or fees, and a statement that the offered rate won't increase before the renewal date. It must contain the same information you get when you apply for a new mortgage.
Not for a straight switch. OSFI exempted uninsured straight switches between federally regulated lenders from its minimum qualifying rate on November 21, 2024, and the Canadian Mortgage Charter lets insured borrowers switch at renewal without another stress test. Adding money or extending the amortization ends the exemption.
FCAC lists possible setup fees with the new lender (discharge, registration, transfer or assignment), an appraisal fee, administration fees, and extra costs to move a collateral charge mortgage. Ask the new lender which of these it will cover.
Rules as of October 2026, from FCAC (renewal and rights pages modified October 15, 2025; discharge page September 25, 2025), OSFI (November 21, 2024) and the Department of Finance Canada (December 15, 2024).
This is general information, not financial advice. Speak to a licensed mortgage professional about your situation.
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