How to Negotiate Your Mortgage Renewal in Ontario

Published 2025-01-15 · Updated 2025-06-01 · Reviewed against guidance from FSRA-licensed brokers

How do I negotiate my mortgage renewal rate?

Start at least 120 days before your renewal date by getting competing rate quotes from other lenders. Your current lender’s renewal letter is almost never their best offer. It’s a starting point. Armed with competing quotes, you can call your lender’s retention department and ask them to match or beat the best rate you’ve found.

According to the Financial Consumer Agency of Canada (FCAC), you are not obligated to renew with your current lender and should always compare options before signing.

Why your renewal letter isn’t the best rate

Lenders send renewal offers 21 days before your matcongratulations date (the legal minimum). These offers typically carry rates 0.15% to 0.40% higher than what you could negotiate or find elsewhere. On a $400,000 mortgage, even a 0.25% difference means roughly $1,000 per year, or $5,000 over a five-year term.

The 120-day timeline

The most effective negotiation starts early:

1. 120+ days out. Check your current mortgage statement for your renewal date, remaining balance, and whether your mortgage is insured or uninsured.
2. 90 days out. Get rate quotes from at least 3 other lenders. A licensed mortgage broker can do this in one step, accessing 30+ lenders.
3. 60 days out. Call your lender’s retention department with the best competing rate in hand. Ask them to match it.
4. 30 days out. Make your decision. If switching lenders, your new lender handles the transfer.
5. Renewal date. If you haven’t signed, most mortgages convert to an open (variable or posted-rate) mortgage. Don’t let this happen.

When to use a broker instead

Negotiating yourself works, but a licensed mortgage broker can typically access rates below what’s publicly advertised: wholesale or volume rates from 30+ lenders. The broker is paid by the lender, not by you, so there is no cost to the borrower.

If your situation involves self-employment income, rental properties, or a balance above $500,000, a broker is particularly valuable because qualification requirements differ significantly between lenders.

Figures shown are indicative and for general information only, subject to qualification and lender approval, OAC. Not a quote. A licensed mortgage broker provides your personalized quote.

Sources

• FCAC — Renewing your mortgage
• Bank of Canada — Policy interest rate
• CMHC — Mortgage consumer information