Mortgage Renewal in 2026: What to Do Before Your Rate Resets

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If your mortgage term ends in the next few months, the rate you sign now sets your payment for years. Waiting for the renewal letter is the most expensive way to do it.

Here are the official dates, rules and posted numbers behind a mortgage renewal in 2026, and what to do before your rate resets.

Quick answer: Start shopping a few months before your term ends. Your bank must send a renewal statement at least 21 days before the term ends, but you can negotiate or switch lenders. A straight switch no longer requires the OSFI stress test for uninsured mortgages. The Bank of Canada held its policy rate at 2.25% on September 2, 2026, and RBC’s and TD’s 5-year fixed specials are 5.04% and 5.14%, as of September 2026.

Updated on September 23, 2026 · Sources: FCAC, Bank of Canada, OSFI

Key dates and rules for 2026

Item	Official value	Source
Bank of Canada policy rate	2.25% (held Sept 2, 2026)	Bank of Canada
Next rate announcement	October 28, 2026	Bank of Canada
Renewal statement deadline	At least 21 days before term ends	FCAC
Stress test, new uninsured loans	Higher of 5.25% or rate + 2%	OSFI
Stress test, uninsured straight switch	Not required since Nov 21, 2024	OSFI

Renewal rates published today

Lender	5-year fixed	5-year variable
RBC	5.040% special (6.090% posted)	3.950% (prime − 0.500%)
TD	5.14% special (6.09% posted)	4.24% (prime − 0.36%)
Scotiabank	6.190% posted	4.900% Flex Value closed
nesto (switch)	4.89% uninsured, 4.39% insured	3.84% uninsured, 3.45% insured

Rates as of September 2026 from each lender’s official rate page. RBC prime is 4.450%; TD Mortgage Prime is 4.60%. Special rates depend on your file, and posted rates are the starting point for negotiating.

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What changed vs last year

Lower policy rate. The Bank of Canada cut its rate by 25 basis points to 2.25% on October 29, 2025 and has held it since. Variable-rate renewals price off prime, which moves with that rate.
Switching is easier. OSFI’s exemption for uninsured straight switches, in force since November 21, 2024, still applies. The new lender still underwrites you under Guideline B-20, but it no longer has to apply the 5.25% floor.
Stress-test values unchanged. OSFI still lists a 2% buffer and a 5.25% floor for new uninsured mortgages.

How to renew: step by step

Four to six months out: find your term end date and balance. Check your credit report; our guide to checking your credit score for free helps.
Review your needs. FCAC suggests asking whether you want bigger payments, a new payment frequency or room for lump sums.
Shop around. Get quotes from other lenders and a broker. Compare against today’s best mortgage rates in Canada.
Negotiate. Show your lender competing offers. FCAC says you may qualify for a rate lower than the one in your renewal letter.
Price a switch. Ask about discharge, appraisal and legal fees, and whether the new lender covers them. A collateral charge can add costs.
Keep the switch “straight.” Adding money or extending the amortization turns it into a refinance, which is stress-tested.
Sign before the term ends. If you do nothing, renewal may be automatic, FCAC warns, and you may not get the best terms.

Breaking early or tapping equity

Leaving a closed mortgage before the term ends can trigger a penalty. FCAC says it is usually the higher of 3 months’ interest or the interest rate differential. At renewal, there’s no penalty to move. If you need cash, compare a refinance with a HELOC under the new rules. Parking a lump-sum prepayment in a high-interest savings account until renewal day keeps it earning.

Checklist

Note your term end date and remaining balance.
Get at least two outside quotes.
Ask your lender to beat them, in writing.
List all switching fees.
Don’t increase the loan or amortization if you want to skip the stress test.
Be wary of anyone charging a fee to “guarantee” a renewal rate or promising approval with no credit check; that is a scam pattern.

Not financial advice. Rates and terms checked on September 23, 2026 with each provider’s official page; confirm before applying. Ieveera SEO is not a government agency and does not charge to explain these rules.

FAQ

How do I use a mortgage renewal calculator?

Enter your remaining balance, remaining amortization, the new rate and the term. The FCAC mortgage calculator is free. Run it at two or three rates to see the payment change.

Is there a mortgage renewal calculator for Canada or Ontario specifically?

The math is the same in every province, so a national calculator works for Ontario. What differs are posted rates and some provincial fees.

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How do I estimate my new mortgage renewal payment?

Use the same amortization you have left. The payment change comes from the rate gap between your old contract and the new offer.

Do I have to pass the stress test to renew?

Not to renew with your current lender, and not for an uninsured straight switch at renewal, per OSFI. A refinance is stress-tested.

For the full picture, see our hub Best Personal Loans in Canada 2026, our list of the best personal loans in Canada and our guide to loans for bad credit in Canada.

Sources

Ieveera SEO is an independent publisher, not a bank or financial advisor; content is for information only and may include paid affiliate links that never affect our rankings — always confirm current rates and terms with the provider. Rates shown in CAD; verify with the issuer.