Best Mortgage Renewal Rates in Canada
How much will renewing your mortgage cost?
Take a minute to find out using our mortgage renewal calculator.
Canadian renewal rate update: October 2025
Mortgage renewal rates in Canada should be stable for much of October.
Variable mortgage rates will stay at their current levels until at least October 29, when the Bank of Canada is scheduled to announce its next overnight rate decision. A rate cut from the Bank will result in a similar decrease in variable rates. (After the Bank reduced the overnight rate from 2.75% to 2.5% on September 17, variable rates dipped by as much as 30 basis points at some lenders.)
Expect variable renewal rates to hover around 4% for most of October, though some brokerages and direct lenders are offering variables for considerably less.
Fixed renewal rates might also be static this month. Government bond yields, which fixed mortgage rates tend to follow, have somewhat flattened out after falling for much of September. If yields avoid any dramatic shifts, fixed rates will, too.
Fixed renewal rates may not dip this month, but they’re still fairly approachable. Brokers are offering three- and five-year fixed rates for less than 3.9%, but they’re still well over 4% at Canada’s biggest banks.
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.
Renewing your mortgage soon?
Remember:
Assessing your own finances is an important step when renewing.
There are ways to lower your monthly payment for your next mortgage contract, even if rates have risen.
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.
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.
How to estimate your new mortgage payment
A simple way to estimate the cost of your next mortgage term is to use a mortgage renewal 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 October 2025, many lenders’ renewal rates are no different than their purchase mortgage rates. Three- and five-year fixed rates can be found for around 3.9% at some brokerages. Variable rates are generally 4% or higher.
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