Best Mortgage Renewal Rates in Canada
You can't expect your lender’s initial mortgage renewal offer to be a bargain. That’s why comparing the best mortgage renewal rates is an essential part of the renewal process.8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
Canadian renewal mortgage rate update: May 2025
Mortgage renewal rates have been fairly stable in May. Since there’s no Bank of Canada interest rate decision scheduled this month, most recent rate movement has been limited to fixed renewal rates.
And it’s not as if fixed rates are all that volatile. There have been some marginal increases in three- and five-year fixed rates at some lenders, but mortgage brokerages are still offering fixed rates for below 4%. As of May 12, 2025, you can find three-year fixed rates for as low as 3.69% and five-year fixed rates for 3.99%.
Fixed renewal rates are more likely to increase than decrease in the coming weeks. Government bond yields, which determine fixed mortgage rates, have been slowly edging upward. When yields increase over a sustained period of time, lenders typically respond by raising their fixed rates.
The best variable mortgage renewal rates, which are currently around 4%, should be stable until at least June 4, when the Bank of Canada is scheduled to make its next rate announcement. The Bank is expected to reduce its overnight rate by 0.25%, which would reduce variable mortgage rates by the same amount.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Here's what you need to know.
How to get the best mortgage renewal rate
There are two ways to secure the best rate on your mortgage renewal: using a broker or negotiating on your own behalf. The method you choose typically depends on where you expect to renew.
If you want to renew with a new lender: Use a mortgage broker
Renewing and requalifying with a new lender can be stressful, but with so many mortgages coming up for renewal in the next few years, competition in the renewal market could work to your advantage.
Finding the best rate when switching mortgage lenders, however, could require the services of a mortgage broker. Brokers have access to lenders from across the mortgage space — Big Six banks, credit unions, alternative lenders and private lenders. They can take care of the comparison shopping for you by weighing a larger number of offers.
Many alternative lenders work exclusively with mortgage brokers, so even if you take care of the comparisons yourself, you may need to tag in a broker to get your application underway at the lender of your choosing.
If you want to renew with your current lender: Negotiate
It’s uncommon for lenders to offer reduced rates on mortgage renewals. They know that renewing with your current lender is the path of least resistance, and tend to charge higher renewal rates in exchange for the convenience.
You’re under no obligation to accept your lender’s first renewal offer, so turn it down and see if their second one is any better. If you’re dealing with a Big Six bank, for example, the initial rate offer might be closer to the bank’s posted rates. Counter by asking for a rate that’s more in line with its discounted or special rates.
No more stress test at renewal: Your rate is your rate
On November 21, 2024, the Office of the Superintendent of Financial Institutions provided guidance to the country’s federally-regulated lenders in anticipation of this year’s renewal wave.
According to OSFI, homeowners renewing their mortgages with a new lender are to be exempted from the mortgage stress test if they have an uninsured mortgage and are not making any changes to their mortgage amount or amortization period.
This brings uninsured mortgages in line with insured mortgages, which haven’t been subject to a stress test on switches since November 2023.
Your finances will still be put under the microscope if you switch lenders upon renewal. That’s unavoidable. But the rate used to determine what you can afford should be the one you’re offered, not the stress test’s minimum qualifying rate, which adds 2% to the contract rate.
Compare renewal rates at Canada's Big 6 Banks
Estimating the cost of your mortgage renewal
A simple way to estimate the cost of your next mortgage term is to use a mortgage payment calculator:
Enter your potential renewal details, including the new interest rate and any changes you may be considering to the amortization period, rate type or payment frequency.
Compare the results to your current mortgage payment to find out how much more you could be paying upon renewal.
Running these numbers yourself can be helpful, but consider your lender or mortgage broker to be the ultimate source of truth when it comes to determining the cost of your renewal.
Frequently asked questions
Does my mortgage rate change when I renew?
Does my mortgage rate change when I renew?
It’s very likely that your mortgage interest rate will change when you renew. Renewal rates are based on lenders’ current mortgage rates, so if rates have risen or fallen since you signed your last mortgage, your next rate will almost certainly be different.
What's a good mortgage renewal rate right now?
What's a good mortgage renewal rate right now?
As of May 2025, many lenders’ renewal rates are no different than their purchase mortgage rates. Both three- and five-year fixed rates are below 3.8% at most brokerages, while variable mortgage rates are generally 4.25% or less, depending on where you apply.
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