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*Rates are based on an average mortgage of $300,000
| Insured | 80% LTV | 65% LTV | Uninsured | Bank Rate | |
|---|---|---|---|---|---|
| 1-year fixed rate | 4.99% | 5.60% | 5.60% | 6.69% |
6.79%
|
| 2-year fixed rate | 5.67% | 5.30% | 5.30% | 6.04% |
6.39%
|
| 3-year fixed rate | 4.79% | 4.94% | 4.94% | 4.94% |
5.55%
|
| 4-year fixed rate | 4.94% | 4.94% | 4.94% | 5.09% |
5.29%
|
| 5-year fixed rate | 4.74% | 4.79% | 4.79% | 4.94% |
4.84%
|
| 7-year fixed rate | 4.94% | 5.29% | 5.29% | 5.09% |
5.90%
|
| 10-year fixed rate | 5.74% | 5.84% | 5.84% | 5.84% |
7.25%
|
| 3-year variable rate | 6.10% | 6.70% | 6.70% | N/A |
8.60%
|
| 5-year variable rate | 5.90% | 6.10% | 6.10% | 6.25% |
6.59%
|
| HELOC rate | 7.20% | 7.20% | 7.20% | 7.20% | N/A |
| Stress test | 6.74% | 6.79% | 6.79% | 5.25% | N/A |
Updated
Both fixed and variable mortgages have term limits. With a fixed term mortgage, the interest rate remains the same until that term is up. With a variable rate, the rate can fluctuate depending on overnight bank rates. Either way, upon completion of the term you can choose to renew your mortgage. Essentially, that means staying with your current lender for a new term.
When renewing your mortgage, you can re-negotiate the interest rate on your new term, and you will not need to re-apply (as you did when you were first starting out). Refinancing, on the other hand, involves paying out an existing mortgage pay-out to allow for renegotiation of a new contract.
Many banks start the mortgage renewal process as much as six months prior to the maturity of the mortgage. This is a great time to do research and shop around to see what is available. New products may be offered by your lender, or perhaps it is time to consider variable mortgage rates if you are a fixed client, and vice versa if you are a variable rate mortgage client. If you are happy with the new terms and rates being offered to you, you can simply sign back the renewal letter you receive from your lender and start the new term.
When calculating your mortgage renewal, you will need to know five pieces of information. You can start by using the RATESDOTCA renewal calculator and inputting:
The best advantage you have when renewing your current mortgage rate is having time. Because your lender notifies you months in advance of your renewal date, you will have the luxury to:
Have more questions about mortgage renewals. We have answers.
Comparison shopping is a great way to find the best mortgage renewal rates. We, at RATESDOTCA, can provide you with the latest mortgage rates from the top providers in your area. Just a few bits of information about your needs and we’ll do the rest.
It can also help to talk to your current lender or seek out information from a mortgage broker. It should be noted that the lowest default-insured rates come from brokers, while the lowest uninsured rates come from banks.
Lenders will want to know your credit score upon mortgage renewal time. A drastic change, up or down, can affect the type of rate you receive and who would be willing to lend you the money.
Generally, the minimum score lenders look for is 650. If your credit score falls around this number, you should have access to all mortgage rates available on the market. Anything above 680 is considered a solid score.
In many cases, banks will renew your mortgage automatically. When your mortgage term approaches the end, your mortgage lender will typically offer you renewal terms that you may choose to accept, negotiate, or decline.
Be wary of your renewal date and give yourself time to do the research necessary to negotiate and secure the best possible Canadian mortgage renewal rate.
*Based on the difference between estimated deep-discount 5-year fixed rates from Canada's top six banks and the lowest comparable rates on RATESDOTCA, as of January 14, 2022
Joel Kranc is a freelance writer and content provider who has worked with RATESDOTCA since 2019. He holds an MA in political science from the University of Toronto and a film certificate from New York University.
He has been published in and worked for such companies as CNN, Rogers Media, Institutional Investor Magazine, The Globe and Mail, Infrastructure Investor, BenefitsPRO Magazine, Global Finance Magazine, With Intelligence, the CPP Investment Board, Hospitals of Ontario Pension Plan, and many more financial services and industry publications.
He is the author of "Retirement Planning in 8 Easy Steps," which, when released in 2015, was No. 11 on the Publisher's Weekly US Bestseller List for Business and Finance, beating out Mark Cuban's "How to Win at the Sport of Business."
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