Best Mortgage Renewal Rates in Canada
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: August 2025
Conditions could be better if you're looking to renew your mortgage in August. Neither variable nor fixed mortgage rates are moving in the right direction.
On July 30, the Bank of Canada held its overnight rate at 2.75%. It was the Bank's third consecutive rate hold, and came as no surprise.
The rate hold means borrowers are stuck with today's variable mortgage rates until at least September 17, when the BoC is scheduled to make its next rate decision. Brokerages currently offer the lowest variable rates — around 4%. You might pay significantly more elsewhere.
At least variable rates are stable. Fixed mortgage rates could spend the rest of the summer inching up.
That's because government bond yields, which help determine lenders’ fixed rates, spent July on a steady upward trek. Yields tapered off somewhat toward the end of July, but they will begin August higher than they’ve been since late January. When yields rise over an extended period of time, lenders often respond by increasing their fixed rates.
Fixed rates crept up here and there in the final days of July, but not to the extent that signals a wholesale shift. You can still find three- and five-year fixed rates advertised ataround 3.9% at some mortgage brokerages.
When renewing your mortgage this summer, it pays to shop around and negotiate any rate you’re offered. Lenders are hungry for business, so take advantage. Compare bank and brokerage rates, and negotiate the best deal you can.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
To get the best mortgage renewal rate, plan to negotiate
There are two ways to secure the best rate on your mortgage renewal: using a broker or negotiating on your own behalf.
Renew with your current lender | Renew with another lender | |
|---|---|---|
Who negotiates? | You. | A mortgage broker can negotiate on your behalf, or you can negotiate directly. |
Do you need to submit a new application? | No. This can be helpful if you’d have trouble getting approved with your current finances. | Yes. |
Will you face the stress test? | No. | No, assuming you have an uninsured mortgage and are not making any changes to your mortgage amount or amortization period. |
How to begin the process. | Wait for your current lender to send you a renewal offer. | Contact a mortgage broker, or begin contacting other lenders directly. |
How to negotiate. | Don’t accept your lender’s first offer. Ask for rates more in line with advertised discounted or special rates. | Mortgage broker negotiates on your behalf. If you’re negotiating with a lender directly, share the most competitive rates you’re getting from other lenders. |
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.
How to approach renewal if your finances have changed
Your financial profile plays a big role in the rates lenders offer. If your income, debt or employment history look significantly different than last time you renewed, here’s what you need to know.
Generally speaking, if your income has gone down or your debts have gone up, lenders will look less favorably upon your mortgage application. Depending on the size of the change, you may have limited options if you’re seeking renewal offers outside your current lender. You can still expect to renew with your current lender — they won’t require you to submit a new application.
If your income has gone up or your debts have decreased significantly, you may be in a stronger position to negotiate than last time your mortgage was up for renewal. To test the waters, don’t settle for the first offer your lender sends you; look into offers from other lenders, either by negotiating directly with lenders or working with a mortgage broker.
Your employment history matters, too. Switching jobs isn’t a negative if the new role is comparable to your last one. If you had a salaried position and are now self-employed, lenders will want to see an established track record — generally two years of consistent earnings. If you are considering a career change, consider doing it well in advance of your mortgage renewal if you want to maximize your mortgage options.
Compare renewal rates at Canada's Big 6 Banks
How to estimate your new mortgage payment
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.
Still curious about mortgage 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 August 2025, many lenders’ renewal rates are no different than their purchase mortgage rates. Three- and five-year fixed rates can be found for between 4% and 4.25%. The best advertised Big Six variable mortgage rates are generally around 4.5%, though mortgage brokerages may have access to lower rates..
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