What happens when my mortgage term is up for renewal?
At renewal, you have the option to 'straight switch' your uninsured mortgage to another federally regulated financial institution.
Key Points
You might not need to requalify at a higher interest rate when you renew your mortgage with a new lender.
Lenders still have to follow careful lending rules when they give you a mortgage.
Lenders will check to make sure you can comfortably afford your mortgage payments, even if interest rates go up.
Lenders consider how much debt people have compared to their income when deciding who qualifies for a mortgage.
Lenders will assess your mortgage application based on how comfortable they are with the risk.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
How does the stress test differ for fixed vs. variable in 2026?
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.
Why are 3-year fixed rates dominating the 2026 market?
Borrowers are hesitant to lock in for 5 years at current levels, but find 1-2 year rates too expensive.
Fixed vs. Variable Comparison Table
Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.
What is the 'IRD' penalty risk for 5-year fixed borrowers?
The Interest Rate Differential (IRD) can cost tens of thousands if you break a fixed mortgage when market rates have dropped.