Renewal is a chance to choose the next contract for the balance you still owe. Start with the remaining mortgage, your expected plans and a complete comparison of the offers available to you.
Start before the renewal letter
If your mortgage is with a federally regulated financial institution, it must provide a renewal statement at least 21 days before the term ends, or notify you if it will not renew. You can begin reviewing options earlier. Switching lenders requires the new lender’s approval, and transfer costs need to be checked. FCAC’s renewal guidance explains these requirements.
Create a single comparison sheet with the renewal date, estimated balance, remaining amortization and current payment. Keep a separate list of changes you actually want, such as a different payment frequency or access to equity. This prevents a new borrowing request from being mistaken for a simple renewal.
Use the years that really remain
Suppose $350,000 remains, with 22 years left to repay it. Monthly principal and interest would be approximately:
| Illustrated rate | Monthly payment |
|---|---|
| 3.00% | $1,809.33 |
| 5.00% | $2,178.36 |
That is about $369 more a month. Both calculations use nominal annual rates compounded semi-annually and the same remaining balance and schedule. They are examples, not market quotes. Using a fresh 25-year schedule for the second offer would change two variables at once and make the payment comparison misleading.
Test that increase against your household budget before choosing an offer. If you can comfortably maintain a higher payment than required, ask how permitted extra payments would affect your repayment plan.
Compare like with like
For every offer, record the rate, term, payment frequency, amortization and mortgage amount. Then record costs paid by you and costs covered by the lender. Add the conditions attached to any cash incentive, so a future repayment obligation does not disappear from the comparison.
Keep a transfer of the existing balance separate from a refinance. Moving $350,000 and borrowing $375,000 are different decisions, even if both happen on the renewal date. Show the extra $25,000, its purpose and its effect on payments. Ask the lender which underwriting and qualification requirements apply to the specific transaction.
Prepare a compact renewal file
Have the current statement and mortgage agreement available. Add recent income records, a list of debts and the property-tax bill. If insurance already exists, locate its reference information. Mark anything that has changed since the previous application, rather than assuming the old file still describes your finances.
Choose a date to compare final written offers and a later date to confirm signing arrangements. Ask who will arrange the payout, how payments around the transfer date are handled, and when any unused funds will be returned. Keep copies of the instructions and confirmation.
Check the outcome in the calculator
Open the residential calculator, enter the remaining balance and 22-year amortization for this example, and compare rates while holding the other inputs steady. Review the payment, qualifying assumptions and remaining cash separately. Use the results to ask focused questions before signing the renewal documents.
Put the figures into a scenario
Use the appropriate assumptions, compare the results and save a summary for your file.
Open the Residential Calculator →Sources and review
References checked September 22, 2026. Examples are illustrative; confirm the lender, insurer and program requirements for your situation.