Mortgage Renewal
The process of setting new mortgage terms when your current term ends — you can stay with your lender or switch without re-qualifying (uninsured, unchanged amount).
At the end of your mortgage term, your mortgage renews into a new term at current market rates. You can negotiate with your existing lender or switch to a new lender. Since OSFI's November 2024 straight-switch rule, uninsured borrowers can switch lenders at renewal without re-qualifying at the stress test — provided the mortgage amount, amortization, and payment schedule stay unchanged. This has transformed renewal competition: borrowers who previously couldn't qualify elsewhere can now shop freely. Insured renewal switches were already exempt from the stress test under a 2019 CMHC policy.
Related Terms
OSFI's November 2024 policy change that eliminated the stress test for uninsured mortgage renewals when switching lenders with unchanged amount, amortization, and payment schedule.
The length of time you're committed to current mortgage conditions — typically 1 to 10 years, with 5 years being the Canadian standard.
A mortgage qualifying rule requiring borrowers to prove they can afford payments at a rate higher than their actual contract rate — the greater of 5.25% or contract rate plus 2%.
Related Guides
Related FAQs
- What's the difference between insured and uninsured mortgage renewals?
- How does mortgage insurance enable lower down payments?
- What property considerations impact my mortgage application?
- When should I start my mortgage renewal process?
- What are Loan-to-Income (LTI) limits and how will they affect institutional mortgage portfolios?