If your mortgage is coming up for renewal this year, you’re in a very different position than you were five years ago. Many Ontario homeowners who signed five-year terms back in 2020 and 2021 locked in some of the lowest rates in history. Those terms are now maturing into a higher-rate environment, and the renewal letter in your mailbox may quote a payment that’s noticeably larger than what you’re used to.

The good news: a renewal is also your single best opportunity to take control of your mortgage. You are not locked in to your current lender, and the rate on that first letter is rarely the best rate you can get. This guide walks you through exactly how renewal works in Ontario, what your options are, and how to decide whether to stay put or move your mortgage elsewhere.

What “renewing” actually means

When you take out a mortgage, the contract runs for a set term — anywhere from a few months to five years or longer. At the end of that term you either pay the balance in full or renew it for another term. Because most people need several terms to pay a mortgage off completely, renewal is a normal, recurring milestone, not a sign anything has gone wrong.

What changes at each renewal is the interest rate, and that’s where the stakes lie. The rate you sign for over your next term will shape your monthly payment, and your total interest cost, for years.

Your renewal statement: read it carefully

If your mortgage is with a federally regulated lender such as a bank, that lender is required to send you a renewal statement at least 21 days before your current term ends. This statement spells out your remaining balance, the offered interest rate, the payment frequency, the term, and any fees that apply.

Two things are worth knowing. First, the rate quoted in that letter is a starting point, not a final offer — it’s frequently higher than what the same lender will give you if you ask. Second, if you do nothing, your mortgage may renew automatically at the quoted terms, which is the easiest way to overpay. Treat the renewal letter as an invitation to negotiate, not an instruction to sign.

Rethink your mortgage before you renew

A renewal is a natural moment to ask whether your current mortgage still fits your life. It’s worth considering whether your budget now allows larger payments so you can be mortgage-free sooner, whether you’d benefit from a different payment frequency, whether you expect to make lump-sum prepayments, and whether you’re genuinely happy with your current lender’s service. Many homeowners also use a renewal to consolidate higher-interest debts, like credit cards or a car loan, into the mortgage at a much lower rate.

These questions matter because the “right” mortgage isn’t only about the headline rate. Prepayment privileges, portability if you might move, and penalty calculations can be worth far more than a few basis points over the term.

The big question: stay or switch?

Here’s the part the banks ranking at the top of Google won’t emphasize: you don’t have to renew with your current lender. You’re free to move your mortgage to another lender if their terms suit you better.

Reasons to stay: your current mortgage already meets your needs, you value the relationship, or your lender is willing to match a competitive offer. Staying is also simpler — there’s no new application and no switching paperwork.

Reasons to switch: another lender offers a meaningfully lower rate or better features, and the savings outweigh the costs of moving. On a typical Ontario mortgage balance, even a modest rate improvement can add up to thousands of dollars over a five-year term, which is exactly why it’s worth shopping the market rather than signing the first offer.

The catch is that switching isn’t free, so the decision comes down to whether the savings clear the costs.

What switching actually costs

If you move to a new lender, that lender has to approve your application, and they may assess your finances using different criteria than your original lender. You should also budget for potential costs, which can include setup fees with the new lender (such as discharge, registration, transfer or assignment fees), an appraisal fee to confirm your home’s value if one is required, and other administrative charges. Many lenders will cover some or all of these switch costs to win your business — so always ask.

A few situations need extra care. If your loan amount increases or you extend your amortization, you could trigger a new mortgage loan insurance premium. And if your existing mortgage was registered as a collateral charge (common with some bank products and lines of credit), you may face additional discharge and re-registration costs to move it. Because collateral-charge mortgages require you to repay or transfer everything secured by that charge, it’s worth confirming with your lender or lawyer how your mortgage is registered well before your renewal date.

A simple timeline that puts you in control

Start early. The window to act well is a few months before your term ends — not the week the renewal letter arrives. A practical sequence looks like this: about four to six months out, gather your current balance, term-end date, and existing rate, and start comparing what’s available across lenders. Around three months out, get competing quotes and ask your current lender to beat them. With offers in hand, decide whether the best deal is staying (ideally at a negotiated rate) or switching. Then leave enough time before your maturity date to complete any switch paperwork so you avoid lapsing onto an automatic, higher-rate renewal.

How a mortgage agent helps at renewal

This is where working with an independent mortgage agent changes the math. A bank can only offer you the bank’s products, and its renewal department isn’t motivated to point you toward a competitor. An agent like Saif Abdulah works across many lenders at once, which means one conversation can surface what dozens of lenders are actually offering, including options the big banks won’t show you.

A good agent will run the stay-versus-switch numbers for you, factor in the real switching costs, handle the application and paperwork, and push for a sharper rate than the letter you received. In a year where renewals are landing at higher rates, that comparison shopping is often worth far more than the time it takes to make a single phone call.

Frequently asked questions

When should I start the renewal process in Ontario?

Begin a few months before your term ends — ideally four to six months out. Federally regulated lenders must send your renewal statement at least 21 days before maturity, but you shouldn’t wait that long to start shopping.

Can I switch lenders without penalty at renewal?

At the natural end of your term you generally won’t face a prepayment penalty for leaving, but you may face switch costs such as discharge, registration, or appraisal fees. Many lenders offer to cover these, so always ask.

Will switching lenders affect my mortgage insurance?

Possibly. If your loan amount goes up or you extend your amortization, a new insurance premium can apply. If you already have insurance, tell the new lender and ask your current lender for the certificate number so you’re not charged twice.

Is it worth switching for a small rate difference?

It depends on your balance and the switch costs. Even a small rate reduction can save thousands over a five-year term, but the savings have to clear the moving costs — which is exactly the calculation an agent can run for you.

Thinking about your upcoming renewal? Contact Saif Abdulah to compare your options across multiple lenders and find out whether you should stay or switch — before you sign that renewal letter.