Mortgage renewal: compare more than the rate

A lower advertised rate does not by itself show which renewal option costs less or fits better. Compare the same balance and term, then check payment frequency, prepayment privileges, fees and any costs to move the mortgage.

Start with the renewal statement

For a mortgage with a federally regulated financial institution, the renewal statement must include the remaining balance, interest rate, payment frequency, term and applicable charges or fees. Use these figures as the starting point for an apples-to-apples comparison.

Compare the full set of terms

Review the proposed rate alongside the mortgage term, payment amount and frequency, amortization, prepayment privileges and portability. A product with a different term or less flexibility is not directly comparable on rate alone.

Include the cost of switching

Ask for an estimate of discharge, registration, transfer, appraisal and administration costs where they apply. If you break a closed mortgage before maturity, a prepayment charge may apply. Ask the current lender for a written payout statement and ask the new lender which costs it will cover.

Give yourself time to review

FCAC recommends shopping around a few months before maturity. The renewal date can be a chance to review your budget, expected extra payments and whether the current mortgage structure still fits.

A practical comparison checklist

Compare the same mortgage balance and a clearly stated term. Record the offered rate, payment amount and frequency, amortization, prepayment options, fees, discharge costs and any qualification conditions. Ask each lender to explain differences in writing.

General information only. Mortgage rates, fees, eligibility and terms vary by lender and borrower. Confirm the specific contract terms and costs with the relevant lender or legal professional; approval is subject to lender review.