When should I start?
At the end of the term, the balance has to be repaid or renewed. Your current lender’s offer is a comparison point, not a decision. Rate matters, yes, but the term, the amortization, the prepayment privileges, the penalty, and the registered charge also decide what the agreement will let you do afterward.
Which documents do I pull before comparing?
Before comparing anything, gather what describes your mortgage as it stands today:
- The renewal notice you received, with the rates and terms offered
- Your current balance and the remaining amortization, in years and months
- Your prepayment privileges and how the penalty is calculated
- The type of charge registered against the property and what else it secures
- Your dated plans for the next term: a sale, renovations, retirement, accelerated repayment
Without those pieces, you’re comparing two rates and nothing else. With them, you’re comparing two agreements.
How do I compare two offers on the same basis?
The most misleading comparison is the one that stretches the amortization to show a lower payment. Put every offer back on the same balance, the same remaining amortization, and the same payment frequency. Then, and only then, look at the rate.
| Figure | Current offer | Other proposal |
|---|---|---|
| Balance financed | Include only comparable amounts | Check for fees added to the loan |
| Amortization | Record remaining years and months | Do not extend it without showing the change |
| Payment | Use the same frequency | Separate the rate effect from amortization |
| Cost during the term | Interest and applicable fees | Add appraisal, transfer, or legal costs |
How far should the comparison go?
The contract term isn’t necessarily your own horizon. Expecting to sell in two years? Look at what happens after two years. Planning to push repayment hard for five? Look at the balance left after five years. That common date stops a lower payment from hiding a stretched amortization.
| At the chosen date | What to compare | What the payment alone does not show |
|---|---|---|
| Amounts paid | Payments and fees already paid | The portion applied to interest |
| Principal repaid | Opening balance less remaining balance | The effect of a longer amortization |
| Cost of a change | Transfer, appraisal, legal work, or possible penalty | Costs absorbed or deferred |
| Flexibility remaining | Prepayment rights, portability, and exit terms | The cost if your plans change |
Ask what happens to the payment at the renewal after this one, too. A comfortable offer today can simply push the increase, or a bigger balance, to the next maturity date.
To pick the right date, list what could happen during the next term: a sale, a separation, a move, renovations, retirement, accelerated repayment. The more likely and the closer a change is, the more it pays to price the agreement’s flexibility.
Fixed or variable isn’t decided on a market forecast. Your tolerance for a payment change, the room in your budget, and how the product actually works carry more weight than an opinion about the Bank of Canada’s next announcement.
Which clauses will cost me later?
Check how much you can prepay, how the penalty is calculated, whether the mortgage is portable, and what other credit is secured by the property. A sale, a move, or a large repayment can make one clause more expensive than a small gap in rate.
Ask as well whether the offer changes the type of charge registered against the property or ties in other credit. That can complicate a later switch or refinance.
Renew, switch, or refinance?
These three choices answer different needs. A switch generally keeps the same loan amount and changes lenders, subject to a new review. A refinance changes the amount or the amortization, and that triggers a different analysis.
| Option | What it may solve | Point to confirm |
|---|---|---|
| Renew in place | Continue with a new term | Proposed conditions and automatic renewal |
| Change lenders | Obtain a different agreement for the balance | Qualification, timing, and transfer costs |
| Refinance | Add funds or change the structure | New balance, amortization, and total cost |
The other lender has to approve the request. It may absorb certain switching costs, but get that in writing. Don’t assume it.
Which mistakes come up most often?
- Renewing by default. Signing the offer you received without comparing anything means accepting conditions you never read.
- Comparing two offers on different amortizations. The payment falls, the interest climbs, and repayment moves further away with nobody showing you.
- Waiting until the last week. Switching lenders takes time. Deciding the day before maturity removes your options.
What if staying is the right answer?
So a good comparison can end without a new application. You keep the mortgage knowing why the offer fits, what was checked, and what payment you’ll carry.
What if I sell in two years?
A homeowner gets a five-year fixed offer but expects to change properties in about two years. He compares it with a shorter term and a portable option. For each scenario, he works out the cost over two years and looks at the possible penalty at the time of sale.
The cheapest term over five years isn’t necessarily the cheapest if the sale happens. The example shows the method; the actual penalty depends on the agreement, the balance, rates, and the exit date.
What does Mathieu do if another offer is better?
I put your renewal offer and the other options side by side, on the same basis. I show you the payment, the interest, the fees, and the clauses that touch your plans. If you switch lenders, I prepare the application and stay on it until the new mortgage is in place.
I’ll also tell you when an apparent saving comes only from a stretched amortization. The new lender stays responsible for reviewing credit, the property, and the final approval.
Three short answers
Must I stay with my current lender?
You can look elsewhere. The other lender does have to approve your file, and the timing and the costs need to be planned ahead.
Is a lower rate always cheaper?
No. Add the fees and look at the conditions over the period you expect to keep the loan.
Should I extend the amortization to lower the payment?
Not automatically. The payment falls, but the interest climbs and repayment moves further away.
Detailed answers about renewal
Sources and review
FCAC — Renewing your mortgage, FCAC — Mortgages: know your rights, FCAC — Choosing a mortgage that is right for you, and AMF — Mortgage features. Reviewed August 16, 2026.