The renewal statement
Before your term ends, the lender sends a renewal statement showing the balance owing, a proposed new rate and term, and a deadline to respond. This is an offer, not a requirement; you can accept it as written, ask the lender to improve it, or decline it in favour of another lender.
If you do nothing by the deadline in some contracts, the lender can roll the balance into a short default term at a less favourable rate, so respond even if you plan to stay.
Switching lenders at renewal
Moving the mortgage to a new lender at renewal is usually simpler than qualifying for a purchase, because most lenders do not require a full new appraisal or income requalification for a straightforward switch of the same balance and amortization. The new lender pays out the old one directly through the switch, and a new charge registers in place of the old one.
A broker can canvass multiple lenders for a switch the same way as for a new mortgage; your existing lender has no right to match another lender's offer, though many will negotiate if asked.
What a switch involves for your lawyer
A lender-to-lender switch still needs a lawyer to prepare and register the new charge and to discharge the old one, even though no property is changing hands. The new lender's instructions govern the same way as on a purchase: title is checked, the old mortgage is paid out, and the new charge is registered.
Because no sale is involved, the timeline is usually shorter and there is no land transfer tax, which applies only to a transfer of the property itself.
Increasing the amount at renewal
Renewing and refinancing can happen at the same time if you want to borrow more than the current balance. That additional amount is underwritten more like a new mortgage: income and the property's value are reviewed again, and the qualifying rules that applied to your original purchase generally apply again to the increase.
Keep the renewal decision and the borrowing decision separate in your own mind, even if the paperwork happens together.
Your steps
Who's involved
Sends the renewal statement and, if you stay, registers no new charge; the existing one continues.
If you switch, pays out the old mortgage and requires a new charge registered in its place.
Can canvass other lenders for a switch and negotiate terms on your behalf.
Prepares and registers the new charge and discharges the old one on a switch, even without a sale.
Documents you will need
Tools for this stage
Use this at renewal, to compare your lender's offer against switching elsewhere, over the term, after switching costs.
CalculatorMortgage payment calculatorUse this to see a monthly, bi-weekly or accelerated payment for a given rate and amortization, with Canadian semi-annual compounding.
Guides to download
Questions people ask
Am I required to accept my lender's renewal offer?
No. The renewal statement is an offer. You can negotiate it, or move the mortgage to a different lender through a switch, without penalty, provided you act before the term actually ends.
Does switching lenders at renewal require a new appraisal?
Often not, for a straightforward switch of the same balance and amortization. A new appraisal or full income review is more likely if you are also borrowing more or the property or your circumstances have changed.
Is land transfer tax payable when I switch lenders?
No. Land transfer tax applies to a transfer of the property itself, not to registering a new mortgage against a property you already own.
What happens if I miss the renewal deadline?
Depending on the mortgage's own terms, the balance can roll into a short default term at a less favourable rate until you respond. Read the renewal statement's deadline and act on it even if you intend to stay with the same lender.
Can I renew early, before my term ends?
Some lenders allow an early renewal, sometimes without the usual early payout charge, in exchange for locking in current terms sooner. Ask the lender directly; this is a matter of the individual mortgage contract, not a general right.
Also in this centre
Read more
Related centres
Other Learning Centres for the same transaction.
What happens between deciding to buy and settling into an Ontario home: budget and pre-approval, the search, the offer and its conditions, financing and inspection, closing day and the first year, with the legal layer explained at every step.
Related centreThe Selling a Home CentreEverything between deciding to sell an Ontario home and the money reaching your account: preparing, pricing, offers, the buyer's conditions, closing and tax, plus the situations that change the rules: tenants, estates and separation.
Sources
- FCAC: renewing your mortgage
- Interest Act, s. 10 (mortgages over five years old)
- Mortgage Brokerages, Lenders and Administrators Act, 2006
General information about Ontario law as of 5 September 2026, not legal advice. It does not create a lawyer–client relationship.
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