Mortgage renewal: switch or stay

At a federally regulated lender, FCAC's rule: you must receive a renewal statement at least 21 days before your term ends (or 21 days' notice that they won't renew) — and the rate in that offer can't increase before your renewal date, which makes it a free rate hold. The strategy mistake is treating the letter as the starting gun: by then you've burned your shopping window. Lender rate holds run 120–150 days, so the real start line is four to five months out.

Renewing with your current lender involves no new application. Switching means the new lender approves you — but since November 21, 2024, OSFI exempts uninsured straight switches (same amount, same amortization) from the minimum qualifying rate, ending the trapped-at-renewal era. A true refinance (more money, longer amortization) still triggers the full stress test. Costs of moving: discharge, registration and appraisal fees — and FCAC explicitly suggests asking the new lender to pay them, which competitive lenders routinely do.

CMHC counted 1.2 million fixed-rate renewals in 2025 and 980,000 in 2026, most contracted when the policy rate was at or below 1% — and its 2026 Mortgage Consumer Survey found renewers' payments rose about $375 a month on average, with 35% reporting increased financial pressure. CMHC now says the wave has peaked. If your renewal payment is the problem rather than the rate, the levers are amortization (a refinance decision) and prepayment-room planning — the refinance break-even calculator prices the break-early version.

Only if the math clears the penalty before the renewal date — because at renewal, switching is free. That's exactly what the break-even calculator tests: penalty plus fees against the monthly saving, simulated to your renewal date. Big-bank fixed-rate penalties (posted-minus-discount IRD) usually kill the trade with under ~18 months left; variables and monoline mortgages break far cheaper. Compute your actual penalty in the penalty calculator first.

The convenient middle option your lender will happily offer: your old rate blended with today's for a new term, no penalty. FCAC notes lenders must disclose how the blend is calculated and that fees usually still apply. Treat it as one bid in your auction, not the answer — its entire appeal is that you don't shop, which is also exactly what it costs you. Benchmark any blend against the live market on our rate table.