Don't sign your renewal letter without reading this first
At maturity, you're free to switch lenders with no penalty, and the new lender might even cover legal and discharge fees. Frank compares renewal rates from 20+ lenders and handles the switch if your current lender won't match.
Renew, switch, or refinance?
Three paths open up at the end of your term, each with different implications for rate, cost, and flexibility.
| Renew (stay with current lender) | Switch (new lender, same balance) | Refinance (new lender, new terms) | |
|---|---|---|---|
| Prepayment penalty | None — term expires naturally | None — if done at maturity | Yes — unless done at maturity |
| Stress test required | No | No | Yes — contract rate + 2% |
| Legal / transfer fees | None | May be covered by new lender (for standard charges*) | Borrower pays (~$1,000–$1,500) |
| Can borrow more equity | No | No | Yes — up to 80% LTV |
| Change amortization | Limited | Limited | Yes — full reset available |
| Best for | Convenience | Getting a better rate without complexity | Equity access, debt consolidation, or amortization reset |
*Collateral charge mortgages (common with TD bank and some HELOCs) may require a discharge and re-registration fee (~$1,000–$2,000) to switch, even at maturity. Ask your current lender what charge type your mortgage uses.
Your renewal timeline, step by step
Most people get their lender's renewal offer, sign it, and move on. Here's what to do instead.
Start shopping early
Most lenders allow you to lock in a new rate up to 120 days before your maturity date, at no cost and with no obligation. Starting early gives you rate protection regardless of which direction rates move over the next few months.
- Contact a Frank licensed advisor as soon as you're within 120 days - even if you plan to stay with your current lender.
- Get competing rate holds from lenders in writing; these don't bind you to switch, but they set your floor.
- Your current lender will likely send a renewal offer around the 90-day mark - you'll be positioned to respond.
- Rate holds from most lenders are free, don't commit you to anything and require minimal documentation at this stage.
Review your needs - your life may have changed since your last term
A renewal isn't just a rate negotiation - it's an opportunity to realign your mortgage with where your life is now. Ask yourself:
- Has your income changed?Higher income might let you take a shorter amortization or higher payments to accelerate payoff. Lower income may mean prioritizing a lower monthly payment.
- Are you planning to move?If you might sell within the next 2–3 years, a shorter term or variable-rate mortgage can minimize large breakage penalties.
- Do you want to pay down faster?Check your current lender's prepayment allowances - 20% annually is best. Use any annual lump-sum room before maturity and/or set a higher payment on renewal.
- Fixed or variable?When rates decline, variable has more upside potential but more payment volatility. Your Frank licensed advisor can model both scenarios.
- Amortization reset?If you need lower payments, a refinance at renewal can achieve this but it can extend your payoff timeline.
Compare your options and negotiate your rate
By now you have your lender's renewal offer and at least one competing rate. This is your leverage window. Most borrowers accept what their lender sends. The ones who don't often save thousands.
- Negotiate with your current lender and take the best rate and mortgage option suited to your needs.
- Compare the full product, not just the rate: prepayment privileges, portability, penalty calculation method, and lender customer service all matter.
- Switching lenders at maturity can be a low-cost way of getting into a better situation with your new mortgage at renewal time.
- Use the calculator below to see how a rate difference translates into real dollars on your balance
Complete your renewal, whether you stay or switch
You've made the decision. Now let your lender or mortgage broker do the work for you.
- Staying with your lenderSign the renewal agreement. Most lenders offer digital renewal - review all terms before signing, especially the prepayment and portability clauses.
- Switching lendersFrank's licensed advisors coordinate document collection and lender communication. Your new lender's solicitor handles the property charge transfer.
- The cost of inactionIf you do nothing at maturity, most lenders automatically renew your mortgage to a short open term at a posted (higher) rate - don't let this happen by accident.
- After signingSet a calendar reminder for 4 months before your next maturity date - the process begins again.
Everything you need to know about switching
Switching lenders at renewal is simpler - and cheaper - than most people think.
What switching typically costs you
- Legal / transfer feesUp to $1,000 on standard charge mortgages, but the new lender often covers this
- Discharge fee$0–$350 charged by your current lender to release the mortgage
- Collateral charge re-registration~$1,000–$2,000 if your current mortgage is a collateral charge (TD Bank and some HELOCs). Check before you proceed
- CMHC / insurer fee$0 if your mortgage is already insured
- Broker fee$0 - the new lender pays Frank, not you. Frank discloses all compensation in writing
When switching makes clear sense
- Your lender is offering a rate above the market rate and won't negotiate
- You want to move from a collateral charge lender (e.g. TD) to a portable standard charge for future flexibility
- Your financial situation has improved and you qualify for a better lender tier
- You want features your current lender doesn't offer (e.g., lower penalties, better portability)
- Your current lender has poor service and you want to start fresh
Documents you'll need
- Recent mortgage statement showing balance and maturity date
- T4 slips or NOA from last 2 years (income verification)
- Recent pay stub (if employed)
- Property tax bill or assessment
- Government-issued photo ID
- Current homeowner's insurance certificate
Thinking about accessing your equity at renewal?
If you want to borrow against your home's equity for renovations, debt consolidation, or investment, renewal is an ideal time to redo your mortgage because there is no penalty. This requires a refinance (new balance, new underwriting), but timing it at maturity eliminates the break fee. Use the tool below to estimate how much equity you may be able to access.
Equity Unlock Calculator
Find out how much equity you can access through a refinance or switch.
Frank's licensed advisors find the best renewal rates for you
Most borrowers accept whatever their lender sends. Frank's licensed advisors do the negotiating on your behalf, backed by live competing offers from more than 40 lenders, so your current lender knows you have real alternatives.
- 1. We shop the market for you. Your Frank licensed advisor gives you access to a market with over 40 lenders. Our system finds you the best rates and lets you know your options. That's your leverage - and we hold it for you.
- 2. We help you negotiate. Frank's licensed advisors connect with all lenders directly, including your current lender, and work to improve on any offer you have.
- 3. We show you real lender rates, not broker estimates. Live rates, updated daily, so you always have access to the lowest rates.
- 4. We flag cash-back traps. Some lenders offer cash back instead of a lower rate - a trade that typically costs more over a 5-year term. Frank's licensed advisors run the numbers before you decide.
- 5. We're prepared to move your mortgage if your lender doesn't match. Switching is penalty-free at maturity and the new lender often covers fees.
All of this is included in Frank's free mortgage service. The lender pays Frank - you pay nothing.
Current mortgage renewal rates
Rates shown are available today from lenders Frank works with. Use these as your benchmark when evaluating your lender's renewal offer.
Frequently asked questions about mortgage renewal
Do I have to pass the mortgage stress test when I renew?
No. If you stay with your current lender at renewal, or switch to a new lender no stress test is required. You simply agree to a new rate and term without needing to stress test the rate.
Recent changes from the government mean taht you can now take your mortgage to any lender without re-qualifying at the stress test rate - a major change that makes shopping around much easier.
Can I refinance at renewal?
Yes and renewal is one of the best times to refinance. Because your term expires naturally, there is no prepayment penalty. A refinance means taking on new terms: you could increase your balance, extend your amortization, consolidate debt, or access equity.
A refinance at renewal requires full underwriting with the new lender (income verification, credit check, appraisal) and you will need to pass the stress test. Legal fees (~$1,000–$1,500) also apply. But the absence of a penalty often makes the math work cleanly.
What if I can't afford higher payments at renewal?
Higher payments at renewal are stressful, but you have real options:
- Extend your amortization — resetting to a longer remaining amortization (via refinance) reduces monthly payments, at the cost of higher total interest paid
- Switch to a lender with a lower rate — even a 0.25% difference meaningfully lowers payments on larger balances
- Negotiate a counter-offer — your current lender would rather match a competitive rate than lose your mortgage to a competitor
- Contact your lender proactively — most banks have hardship programs offering short-term payment deferrals or relief; access is typically easier if you ask before a payment is missed
How much can I save by switching lenders at renewal?
Savings vary by balance and rate gap. Some benchmarks:
- $300,000 balance, 0.30% lower rate: ~$900/year, or ~$4,500 over a 5-year term
- $500,000 balance, 0.50% lower rate: ~$2,500/year, or ~$12,500 over a 5-year term
- $750,000 balance, 0.40% lower rate: ~$3,000/year, or ~$15,000 over a 5-year term
Frank Mortgage routinely find rates 0.30%–0.70% below posted renewal offers from major banks. Use the payment calculator above to run your specific numbers.
Related guides
Mortgage Renewal Advice
Ten things your lender won't tell you before you sign your renewal offer.
Mortgage Renewal Strategies for 2026
How to make the most of today's rate environment - fixed vs. variable, timing, and negotiating in 2026.
Unlock Savings with a Mortgage Switch
A detailed breakdown of when switching lenders makes financial sense and what it actually costs.
Mortgage Renewal — Key Things to Consider
Rate, term, product features, and amortization: the full checklist before you finalize your renewal decision.
Prepayment Penalties in a Declining Rate Environment
If you're thinking about breaking your mortgage mid-term rather than waiting for renewal, read this first.
Fixed Rate or Variable Rate Mortgage?
The fixed vs. variable decision at renewal - an honest risk assessment for today's market.
Ready to see what you can actually get?
Frank compares renewal rates from 20+ lenders and handles the switch if your current lender won't match. No cost, no obligation.