Managing & Renewing
Switching Lenders at Renewal
Your lender's renewal letter rarely shows their best rate — here's why shopping around pays off.
Updated for 2026
Most Canadians simply sign the first renewal offer their lender mails them, without comparing it to anything else. That convenience can cost thousands of dollars in interest over the term.
The posted rate isn't the best rate
Lenders typically lead with their posted rate and save discounted rates for customers who ask — or who have a broker asking on their behalf. A broker working with dozens of lenders can often negotiate a meaningfully lower rate than what shows up in your renewal letter.
What to check before you sign
- Whether the rate is actually competitive, not just convenient
- Whether the mortgage allows the prepayment privileges you want
- How the penalty is calculated if you ever need to break the term
- Whether switching lenders makes sense for your situation
Start shopping around four months before your renewal date — that's enough time to compare offers properly without feeling rushed into whatever shows up in the mail.