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: June 2025
Things aren’t getting any easier for homeowners facing a mortgage renewal.
On June 4, 2025, the Bank of Canada held its overnight rate at 2.75%. Maintaining the overnight rate means variable mortgage rates will stay at their current levels until at least July 30, when the Bank is scheduled to make its next overnight rate decision.
The lowest variable rate offers on renewals remain around 4% at several mortgage brokerages, but are higher at the country’s largest banks.
Fixed mortgage rates have been more volatile, as lenders respond to recent activity in the government bond market.
Government bond yields rose for much of May, and were up in the first few days of June. When yields rise, fixed rates tend to follow suit.
Sure enough, three- and five-year fixed rates have been edging up.
As of June 4, 2025, you could still find fixed-rate renewal offers below 3.9% at some brokerages, but most are closer to 4%. If bond yields continue rising, we could be saying goodbye to sub-4% fixed rates for a while.
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.
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 June 2025, many lenders’ renewal rates are no different than their purchase mortgage rates. Both three- and five-year fixed rates can be found for under 4% at some brokerages, while variable mortgage rates are generally 4% or higher, depending on where you apply.
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