October 2, 2026
Mortgage renewal vs refinance vs switching lenders
By Rahul Bedi
Your term is ending. Here is how renewing, refinancing and switching differ — and how to choose.
When your mortgage term comes to an end, you have three broad paths: renew with your current lender, switch to a new lender, or refinance. They sound similar, but each one changes different things about your mortgage.
Renewal
A renewal keeps your existing lender and balance and sets a new term and rate. It is the simplest option, but the first offer your lender mails you is not always their best. It is worth comparing before you sign.
Switching lenders
A switch moves your existing balance to a new lender at maturity, usually without changing the amount owed or the remaining amortization. You will need to re-qualify, and some switches come with small legal or appraisal costs — many lenders cover these.
Refinancing
A refinance replaces your mortgage with a new one, often to access home equity, consolidate debt or change the amortization. In Canada you can generally refinance up to 80% of your home's value. Breaking a term early can trigger a prepayment penalty, so timing matters. A broker can lay all three options side by side so you can decide with clear numbers.
General information only — not financial advice. Rates and product availability subject to change. OAC.
