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Best renewal mortgage rates in Canada

ratehub.ca insights: Markets continue to react to lower jobs numbers and the rising likelihood of both a Canadian and American rate cut next week. This is putting downward pressure on fixed mortgage rates. Variable mortgage rates are stable. In a volatile rate environment, consider getting a pre-approval and rate hold 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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$800

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

Highlights from the Bank of Canada’s July 30, 2025 announcement

On July 30, 2025, the Bank of Canada kept its overnight lending rate at 2.75%, extending its pause for a third consecutive announcement. This follows seven rate cuts between June 2024 and March 2025, which brought the rate down from its previous high of 5%.

  • The Bank’s decision reflects its continued concern over elevated core inflation and ongoing trade-related uncertainty. While the economy is showing signs of slowing, the Bank is holding back on further rate cuts due to upward inflation risks from tariffs and global supply disruptions. 
  • With the overnight rate unchanged, the prime rate stays at 4.95%, meaning borrowing costs remain the same for variable-rate mortgages, HELOCs, personal loans, and other prime-linked lending products.
  • Fixed mortgage rates, which respond to movements in bond yields rather than central bank policy, continue to face upward pressure. The five-year Government of Canada bond yield hit 3.13% in mid-July, a six-month high, leading to an increase in fixed-rate pricing. The lowest five-year fixed insured mortgage rate in the market now sits at 3.89%.
  • Savers and conservative investors will see no changes to returns on GICs and high-interest savings accounts, which continue to offer stable, competitive yields amid broader market volatility.
  • Looking ahead, the Bank signaled it remains open to lowering rates further, depending on how inflation and trade-driven costs evolve alongside weakening consumer and business activity. 

Read more: Bank of Canada leaves target interest rate unchanged at 2.75% in July 2025 announcement

Canadian mortgage market update: August 2025

  • Real estate update: Canada’s housing market continued to recover in July 2025, with national sales rising for the fourth month in a row. The Canadian Real Estate Association (CREA) reported 45,973 transactions, up 6.6% from last year and 3.8% higher than in June. Since March, activity has grown by more than 11%, driven largely by the Greater Toronto Area, where sales have surged 35.5%. This rebound comes after a weak spring season, when tariff uncertainty and economic jitters kept many buyers on the sidelines. Prices, meanwhile, remain stable. The national average home price in July was $672,784, only 0.6% above last year and 1.3% higher than June. CREA’s MLS Home Price Index was unchanged month-over-month and 3.4% lower year-over-year. On the supply side, new listings were steady at 88,616 in July, barely changed from June. That has tightened conditions slightly, with the sales-to-new-listings ratio climbing to 52%, still within the balanced range but indicating growing competition. Active listings totalled 202,500 at month’s end, up 10.1% from last year. This translates to 4.4 months of supply, slightly below the long-term average of five months. Looking forward, CREA Chair Valérie Paquin noted, this has been an unusual year, with sales building through the summer instead of cooling, raising the potential for a much more active fall season.

 Read more: Canadian home sales tick 6.6% higher in July

  • CPI update: Inflation in Canada cooled in July, with the Consumer Price Index (CPI) rising 1.7% year over year, down from 1.9% in June, according to Statistics Canada. The slowdown was driven by lower energy prices, as gasoline costs dropped 16.1% compared to last year, following a 13.4% decline in June. StatCan noted that without the removal of the federal carbon tax in April, headline inflation would have been 2.5%. Grocery inflation accelerated in July, as prices for food purchased in stores rose 3.4%. Coffee saw the steepest increase at 28.6%, while confectionery products climbed 11.8%. Shelter costs continued to put pressure on households. Rent prices increased 5.1% annually, pushing the shelter index higher by 3% — its first increase since February 2024. Mortgage interest costs declined further, rising 4.8% in July compared to 5.6% in June. The Bank of Canada’s core inflation measures showed little improvement. Both CPI-Trim and CPI-Median held close to 3%, keeping underlying inflation above the Bank’s 2% target. While July’s softer headline CPI has lifted market expectations for a September 17 rate cut, the final decision will hinge on the August inflation report.

Read more: Canadian CPI falls to 1.7% in July

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:

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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