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Best renewal mortgage rates in Canada

ratehub.ca insights: Bond yields have broached the 3.1% threshold once again, but fixed mortgage rates are holding firm for the time being. Variable mortgage rates are unchanged ahead of next week's Bank of Canada announcement. Consider getting a pre-approval to lock in a rate for up to 120 days.

As of:

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Canadian Lender

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$800

Canwise

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Alterna Savings

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$4,100

Big 6 Bank

Equitable Bank

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$4,100

TD Bank

Why renew with Ratehub.ca?

Here's what you get:

  • Unlike your lender, we give you the best rate from the start – no need to haggle.
  • Did you know: You don't have to renew with your lender? You can usually get a lower rate by switching at renewal. In fact, walking into your current bank and re-signing at renewal often means leaving money on the table. Your existing lender has less incentive to provide you with the most competitive rates, as they already have your mortgage business.
  • Switching comes with cash bonuses of up to $4,000 - that could buy you a vacation!
  • Switching with Ratehub.ca is fast, convenient, and often without fees.
  • Don't lose out on thousands in savings! 

Frequently asked questions

What are current mortgage renewal rates?


Should I renew my mortgage early?


Can you negotiate mortgage rates at renewal?


Can a bank deny a mortgage renewal in Canada?


Do mortgage payments decrease when you renew?


Should I renew my mortgage for 2 or 5 years?


What happens at renewal if you have a collateral mortgage?


How is a mortgage renewal different from a refinance?


Renewal rates over time

From 2007 - Today

Key takeaways

  • When your mortgage term expires, you’ll need to renew it for a new contract.
  • By law, your lender must inform you of your upcoming renewal within 21 days, but borrowers can start the mortgage renewal process up to120 days before their term ends. This is a great opportunity to shop for better mortgage renewal rates, or to negotiate with your current lender.
  • Both insured and uninsured mortgage holders won’t be re-stress tested if they switch lenders at renewal, as long as their original mortgage amount and amortization doesn’t change.

Renewing your mortgage is a great opportunity to ensure you’ve got the best mortgage product for your current needs, and make a change if you need to. However, there are some key factors that borrowers should keep in mind.

Switching to a new lender at renewal time

  • Shop around: Familiarize yourself with the interest rates and products offered by other financial institutions, and whether they’d be a better fit for you in your next mortgage term.
  • Work with a broker: Rather than having to compare your mortgage rate options yourself, working with a broker is a helpful way to get a full picture of the Canadian mortgage rate landscape. These professionals have access to rates from a number of different lenders, and can help you find your right fit.
  • Be aware of how other lenders’ products may differ from your current one: Not all mortgage products are the same; some have features that offer borrowers greater flexibility, such as being able to pay off a portion of their principal balance each year with a lump sum or accelerated payments, or the ability to port your mortgage
  • Consider limitations of certain mortgage types: Some mortgage products, such as collateral-charge mortgages, don’t allow borrowers to switch lenders at all during the lifetime of the mortgage, without using the services of a real estate lawyer.
  • Explore cash back bonuses and incentives: Some lenders offer cash promotions and bonuses to new clients, including those switching to a new lender at renewal time. These special promotions may also come with other product requirements, such as taking out a bank account with the bank, and may have required minimums in terms of mortgage size and term length. It’s important to read the fine print when taking out any mortgage product with a promotional cash bonus.

    Before exploring how different market factors can impact your renewal conditions, watch our expert tips on how to handle renewal like a pro.  

Video: 3 tips for renewing your mortgage

Canadian mortgage market update: July 2025

  • Real estate update: According to the Canadian Real Estate Association (CREA), Canada’s housing market showed continued signs of stabilization as national home sales rose 3.5% year over year to 47,871 units. Monthly sales also increased by 2.8%, pointing to a modest but steady rebound after a hesitant spring season. While activity picked up, prices haven’t caught up yet. The national average home price dipped 1.3% from last year to $691,643, but edged up 1.5% month over month. The MLS Home Price Index, which smooths out volatility, fell 3.7% year over year but remained steady compared to May. New listings were up 8.2% annually to 97,093, but dropped 2.9% from May. That slight tightening in supply, paired with increased sales, nudged the national sales-to-new-listings ratio up to 50.1% — within CREA’s balanced market range of 45–65%. While buyers still have a decent level of choice, the market is starting to tilt toward more competitive conditions. At the end of June, there were 206,435 homes for sale across the country, 11.4% more than a year ago, with 4.7 months of inventory available — just shy of the historical average of 5 months. CREA maintains that the market is gradually shifting into recovery, supported by lower interest rates, resilient economic indicators, and delayed demand that could unfold through the summer and fall.

Also read: National home sales continue to recover in June

  • CPI update: Inflation in Canada rose to 1.9% in June, marking a slight increase from 1.7% in both May and April, according to Statistics Canada’s latest Consumer Price Index (CPI) release. The increase was largely driven by rising vehicle prices, with new cars up 5.2% year over year and used vehicles climbing 1.7%. Meanwhile, consumers saw some relief in other key areas. Gasoline prices were down 13.4% annually. Grocery price growth also cooled to 2.8%, from 3.3% the month prior, thanks to a 3.1% drop in fresh vegetable prices. Restaurant food prices also edged down slightly to 3.2%. Shelter costs continued to ease, rising 2.9% in June compared to 3.0% in May and 3.4% in April. Mortgage interest costs increased 5.6% year over year, down from 6.2%, continuing a steady downward trend following the Bank of Canada’s rate cuts between June 2024 and March 2025. Rent prices rose slightly to 4.6%. Despite softening headline inflation, the BoC’s core measures remain elevated. CPI-Median rose to 3.1%, while CPI-Trim remained at 3.0%. These persistent core pressures, combined with strong job market performance and rising U.S. inflation, suggest the Bank will hold rates steady at its July 30th announcement.

Read more: Canadian CPI rises to 1.9% in June

Housing market forecast for 2025

CREA has slightly adjusted its 2025 housing market forecast, now anticipating 469,503 home sales, a 3% decrease from 2024. The revision reflects a slower start to the year in British Columbia, Alberta, and Ontario, where tariff-related uncertainty had a greater impact on buyer activity than initially expected. The national average home price is expected to fall 1.7% to $677,368, about $10,000 lower than CREA’s previous estimate in April. Price declines are forecast in B.C. and Ontario, while other provinces are expected to see gains of 4% to 8%, leading to a net pullback in the national average. In 2026, CREA projects a 6.3% rebound in home sales, reaching 499,081 units, close to previous forecasts but still below the 500,000 threshold for the fourth year in a row. The average home price is expected to rise 3% to $697,929, maintaining the national trend of prices hovering around the $700,000 mark. Although the outlook has stabilized compared to earlier in the year, CREA highlights that significant uncertainty remains, especially around macroeconomic conditions.

Highlights from the Bank of Canada’s June 4, 2025 announcement

On June 4, 2025, the Bank of Canada held its benchmark overnight lending rate at 2.75% for the second consecutive time, maintaining its pause after a series of rate cuts that began in mid-2024. The Bank has reduced rates by a total of 225 basis points from a peak of 5% over that period.

  • This hold comes amid persistent economic uncertainty, with inflation showing signs of lingering pressure. April’s headline inflation (excluding taxes) rose to 2.3% and core inflation went over 3%, prompting the Bank to hold back on further cuts.
  • As a result of the hold, Canada’s prime rate remains at 4.95%, keeping interest rates stable for those with variable-rate mortgages, HELOCs, and other variable-rate financial products.
  • Fixed mortgages are influenced by government bond yields rather than the BoC's benchmark rate. The Government of Canada’s five-year bond yield remains elevated in the 2.8% range, limiting lenders’ ability to offer discounts. The lowest five-year fixed insured mortgage rate currently available is 3.84%.
  • Returns for savers remain unchanged, with GICs and high-interest savings accounts continuing to offer stable, competitive yields in the current rate environment.
  • Looking ahead, there’s an expectation of another 50 basis points in cuts by year-end, but the Bank is proceeding cautiously as it assesses the impact of tariffs, labour market softness, and consumer confidence on future inflation and growth.

Update on Canadian Mortgage Reforms

On September 16, 2024, the federal government introduced major changes to mortgage qualification guidelines, specifically benefiting first-time home buyers and those buying newly-built homes.

Starting December 15, 2024:

  • All first-time home buyers, including those without insured mortgages, will now have access to 30-year amortization terms. This extended amortization option will also apply to anyone buying a newly-constructed home.
  • The maximum home price eligible for an insured mortgage (a down payment of less than 20%) will rise from $1 million to $1.5 million.

These reforms mark some of the most significant changes to mortgage rules in over a decade and are expected to improve affordability and housing access for first-time buyers.

For a deeper dive into these new mortgage rules, visit the Ratehub.ca blog.

2025 Canadian mortgage renewal facts

  • Almost a quarter of Canadians (23%) will be renewing their mortgages in 2025, and almost half within two years. Two-thirds are anxious about having to go through a renewal.

  • 57% of Canadians expect an increase in their mortgage rate upon renewal.

  • 12% of mortgage consumers were renewers or refinancers in 2024 (down from 13% in 2023).

  • 43% of those renewing in 2024 chose 5 year term, down from 53% in 2023.

  • 24% of those renewing in 2024 chose 3 year term, up from 18% in 2023.

Sources:

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Ratehub.ca education centre

  • Buying

    So you've made the decision to buy a new home! The first step is to figure out how much you can afford to spend.

    read more
  • Renewing

    If your current mortgage is up within four months, now's the time when most lenders will allow you to start the early mortgage renewal process.

    read more
  • Refinancing

    When deciding whether or not you should refinance your current mortgage and replace it with a new one, there are a few important things to consider.

    read more