How far in advance should I start shopping my mortgage renewal?

Start at least 120 days (4 months) before your renewal date. Most lenders will honour a rate hold for 90–120 days, meaning you can lock in today's rates without commitment. Starting early gives you time to shop multiple lenders, get competing quotes, and use them as negotiation leverage with your existing bank.

Can I switch lenders at renewal without penalty?

Yes — at renewal, you can switch lenders penalty-free. Your mortgage term has ended and you are free to move to any lender offering better terms. The new lender typically covers the legal and appraisal costs of the switch. This is one of the most powerful opportunities to lower your rate that most Canadians miss.

How much can I realistically negotiate off my bank's renewal offer?

Typically 0.15–0.40% off the initial posted renewal rate with a phone call. Banks have significant discretion — they'd rather give a rate discount than lose you to a competitor. Having a competing broker quote in hand dramatically increases your negotiating power. The broker quote doesn't cost you anything to get.

Is it worth using a broker just for renewal?

Absolutely. Brokers access wholesale lender rates that are consistently 0.20–0.50% below bank-posted renewal rates. On a $400K balance at renewal, 0.30% is roughly $1,200/year or $6,000 over a 5-year term. The broker gets paid by the winning lender, so you pay nothing. Even if you ultimately stay with your bank, the broker quote gives you leverage.

Free Tool — 2026

Mortgage Renewal Negotiation Tool — Don't Leave Money on the Table

$400 billion in Canadian mortgages renewing in 2026— most homeowners accept the bank's first offer without negotiating.

Your mortgage renewal is one of the few moments your bank is competing for your business. Use this tool to see your options, calculate your savings, and get the exact script to negotiate a better rate — or switch to a broker who will.

Your Situation

Your Options

Action Plan

Your Current Mortgage Situation

Current Mortgage Balance

Current Interest Rate

Renewal Date

Bank's Offered Renewal Rate

Remaining Amortization

How Mortgage Renewal Negotiation Works

When your mortgage term ends, your lender sends a renewal offer — usually at a rate 0.20–0.50% higher than what a broker could get you. Banks know that most Canadians sign without reading, and they price their offers accordingly.

The good news: banks have retention teams specifically tasked with keeping your mortgage at a lower rate than the initial offer. A single phone call armed with a competing quote can get you 0.15–0.40% off immediately. That's $1,000–$2,500/year on a typical renewal balance.

The even better news: switching to a broker at renewal is penalty-free. The new lender covers the legal and appraisal costs. You have complete freedom to move — and your bank knows it. Start shopping 120 days before your renewal date to have maximum leverage. Learn more in our complete Mortgage Renewal Guide.

The Script That Works

Word-for-word negotiation script

“Hi, I'm calling about my mortgage renewal. I've received your offer of [bank rate]% but I've been shopping around and have a competing offer of [broker rate]% from another lender. I value my relationship with [Bank] and would prefer to stay — can you speak to your retention team about matching or beating that rate?”

Tips for success:

✓ Have an actual broker quote with a specific rate — vague references don't work
✓ Ask specifically to speak to the "retention team" or "special rates team"
✓ Be polite but firm — you have all the leverage at renewal
✓ If they won't match, execute the switch — the broker handles all the paperwork

When to Switch vs When to Stay

Consider Switching If:

→ The rate difference is more than 0.15%
→ You're unhappy with your current lender's service
→ You want to access a larger prepayment privilege
→ You want to add or remove a co-borrower
→ You need to change amortization

Consider Staying If:

→ Bank matches within 0.05–0.10% after negotiation
→ You have a complex situation requiring ongoing relationship
→ You expect to need a HELOC or second product soon
→ The switch savings are less than $500 over the term