Homeowner’s Edge
By Adrian Williams · November 5, 2026
You’ve received an early renewal offer, and you’re wondering whether to take it or wait for a better rate. Before you decide, check when the new rate starts, what changing early would cost and whether the new mortgage fits your plans.
You can start looking at your options months before your term ends. That doesn’t mean you have to replace your mortgage right away. What matters is whether accepting early gives you enough benefit to make up for what you’re giving up.
Check three dates before comparing rates
There are three dates to look for in an early renewal offer. Ask your lender to confirm each one in writing.
| Date | What it tells you |
|---|---|
| Offer expiry | How long you have to accept the specific offer. |
| New rate’s effective date | When the new rate and conditions start. |
| Current maturity date | When your existing mortgage term ends. |
Those dates may be different. Signing today doesn’t necessarily mean you’ll keep your existing rate until maturity.
For example, National Bank’s early renewal explanation describes an option where new conditions take effect with the next payment. It also explains a separate option for protecting a rate before maturity. Other lenders may handle this differently.
One thing I watch for when I review an offer is how long you have to accept it. Depending on the lender and situation, an early offer may only be available for two to four weeks. That doesn’t tell you when the new rate starts. It also doesn’t mean your mortgage itself is due in two to four weeks.
What are you giving up to renew early?
When I review an offer, I start with the mortgage you already have. What rate are you paying? How much time do you have left? What would it cost to leave it in place until maturity? Then I look at what changes if you accept.
If your existing rate is lower, renewing early could mean paying more interest for the months you would’ve kept that rate. Even if the offer says “no penalty,” you could still pay more interest.
If the new rate is lower, changing early may reduce interest. You’ll still want to include any fees, penalties and changes to the contract in the comparison.
As the Financial Consumer Agency of Canada explains in its guide to breaking a mortgage contract, breaking a closed mortgage before maturity normally involves a prepayment penalty. Some early renewal arrangements work differently. Ask your lender to put the costs that apply to your offer in writing.
Look beyond the mortgage itself
Before you commit to a new term, we need to look at the rest of your finances and what you’ve got planned. Are you thinking about selling or moving? I’ll also ask about other debts and any changes coming up that could affect your income, expenses or ability to borrow.
A term that looks good today might not fit if you’re planning to sell before it ends. Ask what would happen if you needed to pay it out early. If moving the mortgage to another property is an option, check the conditions so you know whether it’ll actually be available.
Your other debts matter too. Renewing the mortgage doesn’t change those payments. Looking at everything together may bring up other options, but adding debt to your mortgage is a separate decision. A smaller combined monthly payment doesn’t mean you’ll pay less interest overall, especially if you’re taking more years to pay it back.
The goal is to understand the whole picture before choosing the term. Our renewal and refinance review explains how we approach those different decisions.
Being nervous about rates is a reason to run the numbers
Knowing what to expect has value. You still need to know what you’re paying for that certainty.
If a higher future payment worries you, look at what your payment would be at a few different rates, with the assumptions clearly stated. Work out what your household could comfortably manage and what you’d need to change if the payment went above that amount. For more background, read why your mortgage payment may increase at renewal.
Then check whether the offer actually gives you the certainty you’re looking for. A fixed rate generally provides rate certainty for its term. Accepting a variable-rate renewal doesn’t lock your interest rate for that term.
It’s worth looking at keeping your current mortgage until maturity if your rate is lower, changing would be expensive or you’re still working out your moving plans. Accepting early may make sense if the costs are reasonable and the new contract fits what you need.
Before you accept, make sure you know what changes right away, what it costs and whether the new term fits your plans. If those answers aren’t clear, get them before signing.
Separate when you renew from which lender you choose
You can wait until maturity and still stay with your current lender or switch. Timing and lender choice are separate decisions.
Include your current lender in the comparison. Ask what it can offer and which costs you’d avoid by staying. Then look at the other options that fit your needs.
The Financial Consumer Agency of Canada’s mortgage renewal guide outlines potential switching costs, including setup, discharge, registration, appraisal and administration fees. Another lender may cover some of them, so check what you’d actually have to pay.
A useful comparison shows:
- Payments and interest costs.
- Penalties and fees.
- The balance remaining at the comparison date.
- The new maturity date.
- Conditions that matter if you move, sell or repay extra.
Compare the options over the same period. If you compare renewing now with renewing at maturity, you don’t yet know what rate you’ll get at maturity. Look at a few different possibilities and clearly state the assumptions. Guessing one future rate won’t tell you which choice will cost less.
Questions to ask before signing
- When does this offer expire?
- When would the new rate and conditions start?
- What is the new maturity date?
- What penalties, fees or repayments apply?
- What happens if I sell or move during the new term?
- Can I protect a rate for maturity while keeping my existing mortgage for now?
An offer’s deadline tells you when that offer expires. It doesn’t tell you whether accepting it is the right financial decision.
Bring your current mortgage statement and renewal offer to a review. We’ll look at what would change if you accept now, what waiting could involve and how each option fits your plans.
General information for Ontario homeowners. Mortgage options, costs and eligibility depend on your lender, contract and circumstances.
Sources and further reading
- National Bank: How do I renew my mortgage?
- FCAC: Breaking your mortgage contract
- FCAC: Renewing your mortgage
Sources checked November 5, 2026.