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№ vRenewing · Ontario

Renew, or switch lenders?

Your lender's renewal offer isn't always the best rate available to you — but switching has its own costs. Enter both rates below to compare the interest you'd pay over your next term, after switching costs.

Quick answer: On a $380,000 balance, switching from a 4.79% renewal offer to 4.29% elsewhere saves about $7,694 in interest over a 5-year term, even after $1,200 in switching costs. A smaller rate gap can flip the answer — enter your own numbers below.
✓Full term interest compared✓Switching costs included✓Many straight switches cost you nothing
№ v.1Compare Renewal vs. Switch

Renew or switch, compared

Enter your balance, both rates, term, remaining amortization and switching costs. The comparison updates instantly.

See the full renewal timeline and what to ask your lender →.

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№ v.2Read Before You Sign

What a renewal offer leaves out

It arrives automatically — and it isn't always competitive.

Your lender sends a renewal offer automatically before your term ends, and it's often priced at or near the posted rate rather than the best discounted rate available — lenders generally expect some borrowers not to shop around. Comparing that offer against what else is available, over the whole of your next term, is the only way to know whether it's actually competitive.

Many straight switches — same balance, same amortization, moving to a new lender — have their legal and appraisal costs covered by the new lender as an incentive, so "switching costs" are often smaller than borrowers assume. Ask before you assume you'll pay them.

№ v.3When It Needs a Lawyer

Switching vs. refinancing

The line that decides whether this is simple or not.

A straight transfer — the same balance and amortization, just a new lender — is usually a lender-to-lender administrative switch. If you add new money or change your amortization at the same time, that's treated as a refinance, and it needs a lawyer to discharge the old mortgage and register the new charge on title.

Doing nothing at renewal generally means your mortgage auto-renews into a short closed term at your lender's posted rate — rarely the best available number, so it's worth comparing before your renewal date passes.

№ v.4Worked Example

A $380,000 balance, over a 5-year term

Renewing at 4.79%: monthly payment$2,454.17
Renewing: interest over the 5-year term$82,914
Switching at 4.29%: monthly payment$2,353.53
Switching: interest over the 5-year term$74,020
Ahead by switching, after $1,200 of costs$7,694

Run your own number — any balance, rates, term or costs — in the calculator above; it uses the exact same math.

№ v.kKnow the Words

Key terms

RenewalSigning a new term at the end of your current one, with the same lender, on either their posted rate or a rate you negotiate.
Straight transfer / switchMoving your mortgage to a new lender at the same balance and amortization — usually a simpler administrative process than a refinance.
Posted rate vs. discounted rateThe advertised rate a lender publishes versus the (usually lower) rate a borrower who asks or shops around can actually get.
RefinanceChanging your mortgage amount, amortization or lender in a way that isn't a straight transfer — this always needs a lawyer to register the new charge.
№ v.6Before You Ask

Common questions

Does my lender have to offer me their best rate at renewal?

No. A renewal offer is often priced near the posted rate rather than the best discounted rate a lender would give a new or shopping customer. It's worth asking your lender directly, and comparing against other lenders, before assuming the first offer is final.

Is switching lenders the same as refinancing?

Not necessarily. A straight transfer — same balance, same amortization, new lender — is typically a simpler switch. Adding new money or changing your amortization turns it into a refinance, which needs a lawyer to register the new mortgage and discharge the old one.

What does switching cost, and who pays it?

Costs can include an appraisal, legal fees and a discharge fee. On a straight transfer, many new lenders cover some or all of these as an incentive to win your business — ask before you assume you'll pay them yourself.

What happens if I do nothing at renewal?

Most mortgages auto-renew into a short closed term at the lender's posted rate if you don't respond — rarely the most competitive number available. Comparing your options before the renewal date is the only way to avoid it by default.

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These are estimates for planning. They are not legal advice and they do not create a solicitor-client relationship. Last reviewed 23 September 2026.

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