Nerdy Tip: Your lender probably isn’t going to cut you a deal on your intial mortgage renewal rate. 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.
Mortgage Type
Property Value
Mortgage Balance
Province
Term |
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Variable |
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| 1-Year |
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| 3-Year | ||
| 4-Year |
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| 5-Year |
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.
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Canadian renewal mortgage rate update: December 2024
On December 11, 2024, the Bank of Canada slashed its overnight rate again, delivering some good news for homeowners facing a mortgage renewal in early 2025.
The Bank’s 50-basis point cut will reduce variable mortgage rates by 0.5%. The lowest variable rates offered by brokerages will dip to around 4.3%, but they’ll be closer to 5% at the country’s biggest banks.
Fixed rates, particularly those attached to five-year terms, remain the most affordable option. Three-year and five-year fixed rates are available for around 4% at some brokerages.
If you’re facing a costly mortgage renewal in 2025, try to start the process early so you can patiently weigh all of your options. And remember that the rules around renewing a mortgage at a new lender have changed, so you may not have to undergo another mortgage stress test if switching lenders is what you plan to do.
Explore more of Canada’s best mortgage rates
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:
- Choose “Compare.”
- Input your current mortgage details into the required fields.
- 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 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
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.
As of December, 2024, many lenders’ renewal rates are no different than their purchase mortgage rates. Both three- and five-year fixed rates are a little above 4% at some brokerages, while variable mortgage rates are generally 5% or less, depending on term length.
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