With over 4 million Canadian mortgage renewals set between late 2025 and 2026, many homeowners will face higher payments and tighter budgets. But renewal time doesn’t have to be stressful; it’s actually one of the best opportunities to renegotiate your terms and find a better deal.​

Here’s a simple yet strategic checklist to help you navigate your renewal confidently and lock in savings.

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Is the Rate You’re Offered the Best You Can Get?

When your lender sends a renewal notice, don’t sign it right away. Many lenders count on you accepting their initial offer, which is rarely the most competitive.​

Check current rates from other institutions and mortgage brokers, and use those quotes as leverage. Even a 0.25% lower rate can save thousands over the life of your mortgage. A platform like Cannect can compare your options instantly and negotiate on your behalf for exclusive lender discounts.

Should You Consider Fixed or Variable at Renewal?

This is your chance to rethink your rate type. With the Bank of Canada now easing interest rates and forecasts suggesting further cuts through 2026, some homeowners are opting for shorter-term or variable-rate products to benefit from future drops.​

Ask yourself:

• Do you prefer predictable payments with a fixed rate?
• Or are you comfortable taking advantage of potentially falling variable rates?

Your choice should align with your financial goals and risk tolerance.

Do the Terms Fit Your Lifestyle and Goals?

Beyond the rate, the loan’s flexibility is crucial. Ask your lender:

• Can I make lump-sum prepayments without penalty?
• What are the fees if I break the mortgage early?
• Can I adjust my payment schedule (monthly vs. biweekly)?

These conditions can significantly affect long-term savings and your ability to reduce principal faster.​

Should You Stay or Switch Lenders?

Staying with your current lender may feel convenient, but it can also mean leaving money on the table. Major banks often reserve their best rates for new customers, not renewals.​

Compare switching options, but remember to:

• Weigh legal or appraisal fees (many lenders cover them for new clients).
• Ensure you pass the federal stress test, which is set at the higher of 2% above your rate or the BoC qualifying rate.​

Mortgage brokers like Cannect streamline this process, helping you handle the documentation and find a switch that genuinely saves you money.

How Can You Prepare Before Renewal Day Arrives?

The smartest renewals start early, ideally six months before your term ends.​
Here’s what to do:

• Review your mortgage statement: Know your outstanding balance and remaining amortization.
• Check market rates regularly: If rates start dropping, you can lock in early.
• Plan for affordability: If payments will rise, consider reducing other debts or extending your amortization slightly for stability.

Use Renewal as a Financial Reset

A renewal is more than a rate negotiation; it’s a chance to align your mortgage with your broader financial strategy. Consider consolidating high-interest debt into your mortgage, using available equity for renovations, or optimizing your payments to match income cycles.​

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Conclusion

Your mortgage renewal could lead to big savings, but only if you take charge. Ask these five questions, compare multiple offers, and negotiate confidently.

With Cannect, you don’t have to accept what your bank offers. Our mortgage experts compare top lenders, handle the negotiations, and help you find a renewal that fits your life today and your plans for tomorrow. Your renewal is approaching; don’t wait for the rate to find you.

Start your renewal strategy with Cannect now

See how much you could save on your next term.