Mortgage Renewal Guide
Most Canadian mortgages have terms of five years or less, so you'll renew several times. Federally regulated lenders must send a renewal statement at least 21 days before your term ends.
1-year posted
5.49%
Nov 4, 2026 · Bank of Canada
3-year posted
6.05%
Nov 4, 2026 · Bank of Canada
5-year posted
6.19%
Nov 4, 2026 · Bank of Canada
Your options
- Renew with your lender, often after negotiating the rate
- Switch to another lender, which may require qualifying again
- Pay down part or all of the balance at renewal, when prepayment limits don't apply
Plan for a rate change
The 5-year posted rate is 6.19% (Nov 4, 2026). Posted rates are lenders' list rates; many borrowers negotiate lower. The qualifying rate is the higher of your contract rate plus 2 percentage points or 5.25%.
Prepaying
Your contract sets how much you can prepay during the term without a penalty.
Today's borrowing costs
On new uninsured mortgages, Canadians paid an average of 4.58% (Aug 2026) for fixed terms of five years or more and 3.90% (Aug 2026) for variable rates, according to the Bank of Canada. Insured borrowers paid 4.12% and 3.74%.
The Bank of Canada's policy rate is 2.50% (Nov 11, 2026) and the banks' prime rate is 4.70% (Nov 11, 2026). Variable rates move with prime; fixed rates follow Government of Canada bond yields, with the 5-year yield at 3.46% (Nov 10, 2026).
Your renewal statement
Federally regulated lenders must send a renewal statement at least 21 days before your term ends, showing the rate, term and any fees. If you do nothing, some lenders renew automatically, so compare offers before the deadline.
Estimate your new payment
Calculator
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New monthly payment
$2,746.97
+$682.25 vs. today's rate
Interest over the new term
$108,029
+$60,403 vs. today's rate
Balance at the end of the term: $323,211 (vs. $303,743 at your current rate).
Estimate only, based on the published rules listed below. Lenders, insurers and tax authorities apply their own criteria.
Frequently asked questions
Is there a penalty for switching lenders at renewal?
Not at maturity. Prepayment penalties apply when you break a mortgage before the term ends, though the new lender may charge appraisal or legal fees.
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.