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Published April 10, 2024

The Best Mortgage Renewal Rates in Canada

Compare mortgage renewal rates from some of Canada’s best bank and alternative lenders to ensure you’re getting the best deal on your mortgage’s next term.

Nerdy Tip: Just because you’ve been a responsible borrower doesn’t mean your lender is going to cut you a deal on your mortgage renewal. That’s why comparing the best mortgage renewal rates is an essential part of the renewal process. Doing so can provide information to use when negotiating with your current lender, or help you find a new lender with more attractive rates and terms.

Rates updated: April 04, 2024

Mortgage Type

Property Value

Mortgage Balance

Province

Term

Fixed

Variable

1-Year

Rate

6.74%

Est. payment

: $2,761.00/mo

Scotia Bank

:
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3-Year

Rate

4.94%

Est. payment

: $2,324.00/mo

Scotia Bank

:
EXPLORE NOW

Rate

6.30%

Est. payment

: $2,651.00/mo

Radius Financial

:
EXPLORE NOW
4-Year

Rate

5.09%

Est. payment

: $2,359.00/mo

Manulife Financial

:
EXPLORE NOW
5-Year

Rate

4.79%

Est. payment

: $2,290.00/mo

Manulife Financial

:
EXPLORE NOW

Rate

6.05%

Est. payment

: $2,589.00/mo

Neo Financial

:
EXPLORE NOW

Disclaimer: These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners. Mortgage Brokerage Licensed in ON #12984, BC #X301004, MB and AB. Homewise can pursue mortgage brokering activity in SK, NL, NS and NB.

Data source:

Canadian renewal mortgage rate update: April 2024

If you’re renewing your mortgage in April, things could be worse. Three- and five-year fixed rates have edged up recently, but they still remain below 5% in many cases.

Government bond yields have been on a relatively steady rise over the past few weeks, and where yields go, fixed rates generally follow. That could mean higher three-year fixed mortgage rates and five-year fixed mortgage rates in the coming weeks.

Whether rates rise or fall, it’s never a bad time to compare fixed rates among different lenders so you can weigh your renewal options. 

If you believe that variable mortgage rates have peaked and choosing a variable-rate mortgage will save you money, keep in mind that variable rates won’t decrease until the Bank of Canada reduces its overnight rate. That might not be until June. Choose a variable rate now and you could be paying around 6% until then. 

Even if variable rates start falling, the declines are likely to be modest — maybe 25 basis points at a time. The Bank of Canada will be cautious as it draws down the overnight rate, so getting a 6% variable rate to 5% might not happen until 2024.

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’re open to renewing 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 homeowners’ 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.

Nerdy Tip: 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.

Explore each Big Six bank’s posted and discounted rates:

Estimating the cost of your mortgage renewal 

A simple way to estimate the cost of your next mortgage term is to use the comparison function of NerdWallet’s mortgage payment calculator:

  1. Choose “Compare.”
  2. Input your current mortgage details into the required fields.
  3. 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. 
  4. Compare the results to find out how much more you could be paying for your mortgage 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 about mortgage renewal rates

Does my mortgage rate change upon renewal?

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?

As of April 10, many lenders’ renewal rates are no different than their purchase mortgage rates. Five-year fixed rates are around 4.8%, three-year fixed rates are around 5% and variable mortgage rates are around 6%, depending on term length.

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