Your renewal statement: 21 days, at minimum
If your mortgage is with a federally regulated lender such as a bank, FCAC says the lender must send a renewal statement at least 21 days before your term ends, and must tell you at least 21 days ahead if it won’t renew. The statement shows your balance at renewal, the rate, payment frequency, term, and any fees. If the lender plans to renew you automatically, it will say so.
Twenty-one days is a minimum, not a plan. FCAC suggests you start shopping a few months before your term ends and not wait for the letter. Many lenders let you lock a rate or renew early within a window before maturity, often around 120 days. Ask yours for its exact window.
The straight-switch stress-test exemption
The minimum qualifying rate, often called the stress test, is still the greater of your contract rate plus 2% or 5.25% for most new uninsured mortgages, according to OSFI. But since November 21, 2024, OSFI no longer expects federally regulated lenders to apply it to an uninsured “straight switch” at renewal. That means moving an existing stand-alone uninsured mortgage from one federally regulated lender to another with no increase to the loan amount or the remaining amortization.
The Department of Finance made a matching change to the federal mortgage insurance rules for low-ratio mortgages (loan-to-value up to 80%) that switch from a federally regulated lender to any new lender, effective December 16, 2024. It allows the balance to rise by up to $3,000 to cover switching costs, but no equity take-out, and the existing amortization schedule must be kept.
The new lender still has to approve you. OSFI expects it to underwrite the switch like any new loan, check your income and debts, and use sensible qualifying ratios. If you add money or stretch the amortization, it is no longer a straight switch and normal qualifying rules apply.
What switching can cost
FCAC lists the usual costs: setup fees at the new lender, discharge, registration, transfer or assignment fees, an appraisal if needed, and other administration fees. Ask the new lender whether it will cover some or all of them. If your mortgage is registered as a collateral charge, switching can involve extra legal steps and costs. Check how yours is registered a few months ahead.
Worked example: is a lower offer worth moving for?
On October 8, 2026, advertised 5-year fixed rates on Ratehub ranged from 4.34% to well over 5% depending on the lender. Suppose you owe $400,000 with 20 years left, your renewal letter offers 4.84%, and another lender offers 4.34%.
| Renewal offer 4.84% | Switch offer 4.34% | |
|---|---|---|
| Monthly payment | $2,594.06 | $2,487.89 |
| Interest paid over the 5-year term | $88,216.66 | $78,849.51 |
| Balance left after 5 years | $332,573.06 | $329,576.11 |
The lower rate saves $106.17 a month and about $9,367 of interest over five years. Subtract any switching costs the new lender won’t cover to see your real gain. And before you move, show the competing offer to your current lender. FCAC notes you may be able to negotiate a lower rate than the one in your renewal letter.
A simple switching checklist
- Note your maturity date and ask for your lender’s early-renewal window.
- Get two or three written quotes, with the same term, amortization and balance.
- Ask each lender how it will qualify you and what fees it covers.
- Ask your current lender to match. Then decide, in writing, before the deadline.
Getting ready to renew? Our Canadian mortgage renewal checklist (CAD $4.99, one-time download on Gumroad) lists the documents to gather and the questions to ask. Educational only.
Frequently asked questions
Do I have to pass the stress test to switch lenders at renewal?
Not always. Since November 21, 2024, OSFI no longer expects federally regulated lenders to apply the minimum qualifying rate to an uninsured straight switch, meaning no increase to the loan amount or remaining amortization. The new lender still has to approve your application.
When will my lender send my renewal statement?
If your lender is federally regulated, such as a bank, it must send your renewal statement at least 21 days before the end of your term. It must also tell you at least 21 days ahead if it will not renew your mortgage.
What does it cost to switch mortgage lenders at renewal?
Common costs include discharge, registration, transfer or assignment fees, an appraisal if needed, and administration fees. There is no prepayment penalty at maturity. Ask the new lender whether it will pay some or all of these costs.
Can I add money to my mortgage when I switch?
You can ask, but it is then no longer a straight switch and the new lender will apply normal qualifying rules, including the stress test. For low-ratio insured mortgages, the federal rules allow up to $3,000 to be added to cover switching costs.
Try it with your numbers
Open the free calculator, enter the balance, rate and amortization from your own mortgage statement, then switch the payment frequency or add an extra monthly amount. It uses the same Canadian semi-annual compounding as the examples on this page.
Related guides
Sources
- FCAC: Renewing your mortgage
- OSFI: Uninsured straight switches exempt from the minimum qualifying rate (Nov. 21, 2024)
- OSFI: Minimum qualifying rate for uninsured mortgages
- Department of Finance Canada: Straight switches and portfolio insurance
- Ratehub: Best 5-year fixed mortgage rates (Oct. 8, 2026)
- TD: How to pay off your mortgage faster
Checked October 8, 2026. Rules and rates change, so confirm with your lender or the official page before you act.