Find the best mortgage renewal rates in Canada

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Best renewal mortgage rates in Canada

ratehub.ca insights: The lowest 5-year variable mortgage rate in Canada is now 3.7%, following yesterday's Bank of Canada rate cut. Fixed mortgage rates are currently unchanged. In a volatile rate environment, consider getting a pre-approval and rate hold to lock in a rate for up to 120 days.

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Do you have CMHC insurance?

Cashback	Rate	Provider
		Canadian Lender Ratehub.ca Exclusive
★Switch ^$800		Canwise A Ratehub.ca Company
		Alterna Savings
★Switch ^$800		Big 6 Bank
		Equitable Bank
		CMLS Financial
★Switch ^$4,100		TD Bank
		Desjardins
		First National
		Meridian Credit Union
		MCAP
★Switch ^$800		Scotiabank
		ICICI Bank Canada
★Switch ^$4,100		Bank of Montreal
★Switch ^$4,500		CIBC
		National Bank of Canada
		Tangerine
★Switch ^$4,600		RBC Royal Bank
		Simplii Financial ™

see which rates I qualify for

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?

Many Canadian lenders offer the same rates for both mortgage purchases and renewals.

As of September 18, 2025, the best high-ratio, 5-year fixed mortgage rate in Canada is 3.94%, which is available across much of the country, including in Ontario, Quebec, British Columbia and Alberta.

As of September 18, 2025, the best high-ratio, 5-year variable mortgage rate in Canada is 3.7%, which is available across Canada, including Ontario, Quebec, British Columbia and Alberta.

To find the best mortgage rates in Canada in 2024, use our rate table to compare the lowest mortgage rates currently offered by Canada’s Big Banks and top mortgage lenders.

Should I renew my mortgage early?

By law, your lender has to give you 21 days notice before your mortgage term expires – but borrowers can choose to start the mortgage renewal process up to 120 days ahead of the end of their mortgage term without having to pay a penalty to break the term early. Kicking off the process early gives borrowers more options such as shopping around for a better rate, making a lump sum payment to decrease their principal mortgage balance, or opting for a shorter mortgage term.

Learn more about early mortgage renewal.

Can you negotiate mortgage rates at renewal?

Yes – mortgage renewal time is a great opportunity to shop around and see what other mortgage rates you may qualify for at other lenders. You can use this information to negotiate with your existing mortgage lender or choose to switch your mortgage to a new one. As of November 21, 2024, all mortgage borrowers switching to a new lender upon renewal canl be exempted from the stress test as long as their mortgage size and amortization don’t change and their mortgage originated at a federally-regulated financial institution.

Can a bank deny a mortgage renewal in Canada?

As long as you’ve made all your mortgage payments throughout your existing term, and your profile as a borrower hasn’t materially changed – for example, you haven’t lost your income or taken on a large amount of debt – your lender should have no reason to deny your mortgage renewal application. However, if your current lender chooses not to renew your mortgage, you do have options, such as getting a rate from an alternative lender.

Learn more about your options if your mortgage renewal is denied.

You can opt to make a straight switch at renewal – one where your original mortgage amount or amortization period doesn’t change. You may be able to do so without having to requalify for the mortgage stress test. However, if you’re moving to a new lender, you will still need to qualify for their new rate based on criteria such as their income, credit score, and existing home equity. Switching to a new lender at renewal can help you get a more competitive mortgage rate or product with more flexible features.

Do mortgage payments decrease when you renew?

Not necessarily. The mortgage rates available at renewal time will reflect the current borrowing environment in Canada. If rates are the same or lower than when you first got your mortgage, your payment should decrease as your overall mortgage size will be smaller due to the payments you’ve made over the course of your first mortgage term.

If today’s mortgage rates are higher than when you first took out your loan, you’re not alone; according to a survey by Mortgage Professionals Canada, 57% of Canadians expect an increase in their mortgage rate upon renewal, and 75% of those renewing in 2025 are anxious about renewing at a higher rate, compared to 66% of borrowers overall.

Interest rates rose sharply between 2022 and 2023 as the Bank of Canada – which sets the benchmark for the prime rate used by lenders – increased this trend-setting to a historic high of 5%. While the central bank has now entered a rate-cutting cycle and rates are trending lower, they are still considerably higher than borrowing costs in 2020 and 2021, when the Bank’s rate sat at a record low of 0.25%.

Borrowers who are concerned about renewing at a higher mortgage rate should contact their lender to explore their options which can include extending their amortization, getting a lower rate elsewhere, or refinancing their mortgage.

Should I renew my mortgage for 2 or 5 years?

There are pros and cons with either approach. Renewing into a five fixed-rate term can provide longer-term stability in terms of predictable mortgage payments, and general peace of mind – there’s a reason five-year terms are the most popular among Canadian borrowers! However, locking in for that long can mean borrowers may miss out on better mortgage rates, should they trend lower during that time period. Taking out a shorter term, such as a two-year mortgage, can be a good solution for borrowers who want the flexibility to make a change to their mortgage at renewal time sooner. However, shorter-term mortgage rates tend to be higher than five-year terms.

You can use Ratehub’s Mortgage Renewal Calculator to see how your payments would change based on differing term lengths.

What happens at renewal if you have a collateral mortgage?

A collateral mortgage, also referred to as a re-advanceable mortgage, is a product where your lender can lend you more money after you first take your mortgage out, as your property value increases, without having to refinance the mortgage. In a collateral mortgage, the lender registers your home with a collateral charge for a higher amount than the mortgage loan amount than you initially need. This additional borrowing room allows the homeowner to take more money out against their home if they need extra cash. However, this collateral charge can only be registered or discharged by your original lender, and cannot be transferred to a new one. This means borrowers with a collateral mortgage loan cannot switch lenders at renewal time without paying for a lawyer to help them break their mortgage contract.

Learn more about how collateral mortgages work.

How is a mortgage renewal different from a refinance?

A mortgage renewal involves simply taking out a new rate and term by signing a new contract when your existing mortgage term expires. Generally, your original mortgage amount and amortization period don’t change.

A mortgage refinance means making significant changes to your mortgage, such as the type of mortgage, the principal amount, and the amortization period. Borrowers can either refinance their mortgage at renewal time without having to incur a penalty, or break their mortgage mid-term to refinance and pay the required mortgage refinance penalties, which differ based on the type of mortgage.

Learn more about refinancing your mortgage.

Renewal rates over time

From 2007 - Today

Guide to mortgage renewal rates

Jamie David, Sr. Director of Marketing and Mortgages

September 17, 2025

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

Highlights from the Bank of Canada’s September 17, 2025 announcement

On September 17, 2025, the Bank of Canada cut its overnight rate by 25 basis points, lowering it from 2.75% to 2.50% — its first move since April and the lowest level since July 2022.

The rate cut was widely anticipated after August’s inflation came in below 2%, GDP contracted 1.6% in Q2, and the unemployment rate rose to 7.1%, the highest in nine years.
With the overnight rate reduced, Canada’s prime rate will fall to 4.70%, easing borrowing costs for variable-rate mortgages, HELOCs, and other prime-linked lending products.
Fixed mortgage rates are also edging lower as bond yields continue to fall. The Government of Canada’s five-year bond yield has dipped into the 2.6–2.7% range, pulling the best five-year fixed mortgage rate down to 3.94%. Should central banks in Canada and the U.S. continue cutting, yields — and fixed rates — may decline further.
For savers and investors, today’s cut means lower returns on high-interest savings accounts and GICs. While these products remain stable “safe haven” options, yields will soften alongside the decline in the prime rate.
The Bank signaled it remains attentive to the effects of tariffs, weakening exports, and global trade uncertainty on Canada’s economy. With inflation pressures easing and growth slowing, policymakers left the door open to further cuts.

Canadian mortgage market update: August 2025

Real estate update: Canada’s housing market maintained its upward trajectory in August 2025, posting its best August sales since 2025. The Canadian Real Estate Association (CREA) reported 40,257 transactions, up 1.9% compared to last year and 1.1% higher than July. This marked the fifth consecutive monthly gain, with national activity now 12.5% above March’s low. Prices, however, continue to show little momentum. The national average price was $664,078 in August, up just 1.8% year over year and nearly unchanged from July. CREA’s MLS Home Price Index, a more accurate measure of typical market values, declined 3.4% annually and remained flat month over month. Supply improved as more sellers returned to the market and new listings rose 6.1% annually to 75,959. This surge lifted total inventory to 195,453 — 8.8% higher than last year and in line with long-term norms. With supply growth slightly outpacing sales, the national sales-to-new-listings ratio eased to 51.2%, while months of inventory held at 4.4. Both indicators point to balanced conditions, where neither buyers nor sellers hold a distinct advantage. Looking forward, CREA sees the fall market as a key turning point. Many buyers remain on the sidelines after a sluggish spring, but with fresh September listings and the potential for a Bank of Canada rate cut, activity could accelerate.

CPI update: Canada’s inflation rate picked up slightly in August, with the Consumer Price Index (CPI) increasing 1.9% year-over-year, reversing July’s dip of 1.7%. The main driver was gasoline prices, which dropped by 12.7% – a smaller decline than July’s 16.1% fall. Without gas, inflation would have risen 2.4%, showing that underlying price pressures remain steady, though slightly cooler than in recent months. Food inflation also edged higher, reaching 3.5% compared to 3.4% in July. Meat prices saw a sharp acceleration, up 7.2% from 4.7% the month before. On the other hand, fresh fruit became cheaper, down 1.1% thanks to lower cherry and grape prices. Shelter costs, which have been among the largest inflation contributors, showed signs of easing. They rose 2.6% in August, down from 3% in July. Rent inflation slowed to 4.5% from 5.1%, while mortgage interest costs increased 4.2%. Core inflation indicators were also steady: the CPI Median held steady at 3.1%, while the CPI Trim slipped slightly to 3% from 3.1%.

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.

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:

More information about mortgage renewals

Check out the Ratehub.ca education centre and blog for more information on mortgage renewal rates, and the mortgage renewal process.

The mortgage renewal process

Types of mortgages

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3.94%

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For more information, check out these helpful pages

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