- In Canada, a mortgage renewal statement must disclose the remaining balance, the new interest rate, the term being offered, and the payment frequency, and it must reach the borrower at least 21 days before the end of the current term.
- These disclosures are required of federally regulated lenders under the Bank Act's Cost of Borrowing Regulations, enforced by the Financial Consumer Agency of Canada (FCAC).
- If the lender does not plan to offer a renewal, the same 21-day notice period applies to that notification as well.
- Borrowers are not obligated to accept the rate on the statement; they can negotiate with the current lender or move the mortgage to a new lender at renewal.
Six weeks before your mortgage term ends, an envelope arrives from your lender. Inside is a short document with a new interest rate, a few payment options, and a signature line. Most Canadians skim it, sign, and move on.
That instinct is understandable. The paperwork looks routine, and the lender has framed it that way. But the document in your hand is not a formality — it is a legally required disclosure, and the rate it offers is rarely the lender's final answer.
Understanding what the statement must include, what it does not have to include, and what your options are at this moment can affect thousands of dollars over the next term.
— What a mortgage renewal statement is (and isn't)
Think of the statement as the “offer letter” and the renewal agreement as the “contract.” The two documents can look similar on paper, but they do different jobs. The statement is a one-way disclosure from the lender to the borrower. The agreement is the two-way document that, once signed, binds both parties to the new term.
The requirement to send a statement applies to federally regulated lenders — chartered banks, trust companies, and most national lenders. Credit unions and provincially regulated lenders typically follow equivalent provincial rules, which may use different timelines or terminology. For the plain-English definitions behind every term in your statement, see our plain-English mortgage glossary.
— The four items your lender must disclose
The Financial Consumer Agency of Canada (FCAC) enforces these disclosure rules. Each of the four items answers a specific question the borrower needs settled before signing.
The remaining balance is what you still owe on the mortgage at the renewal date. This figure differs from your payout amount, which can include interest to a specific date, discharge fees, and any outstanding property taxes held by the lender.
The new interest rate is the rate the lender is offering for the next term. A statement can present one rate or several — for example, a three-year fixed, a five-year fixed, and a variable. A single-rate statement is not uncommon, and it does not mean you have to accept that rate.
The term is the length of time the new rate applies — not the full repayment period of the mortgage. A five-year renewal does not mean your mortgage ends in five years. It means the next rate period lasts five years, with another renewal to follow.
The payment frequency is how often you pay — monthly, bi-weekly, accelerated bi-weekly, or weekly. If the lender does not plan to offer a renewal at all, the 21-day notice period still applies to that notification. For broader context, see our full guide to mortgage renewals.
What a Canadian mortgage renewal statement must disclose
FCAC-mandated disclosures a federally regulated lender must send at least 21 days before term end.
— Quick Start: pick your path
Once you have read the statement, you are facing one of three decisions. Each has a different timeline, and knowing which path you are on helps you focus your effort.
Sign at the rate offered. The fastest path. The risk is leaving money on the table — the rate on the statement is often negotiable.
Call the lender's retention line, mention a competing offer in writing, and ask what they can do. Banks often hold back a discretionary range.
Move to a new lender. The most work, often the largest savings. The mortgage is re-underwritten from scratch.
A broker who sees fifty-plus lenders can shop the market on your behalf. Razi Khan, Founder and Mortgage Broker at Pegasus has built the firm around this role since 2008. Brokers in Canada are typically paid by the lender, not the borrower.
— Renewal statement vs. renewal agreement
The two documents sometimes arrive together or back-to-back, which can blur the distinction. The practical difference matters: reading and reviewing the statement commits you to nothing. Signing the agreement commits you to the new term, including the interest rate, payment schedule, and any prepayment restrictions written into it.
| What to compare | Renewal statement | Renewal agreement |
|---|---|---|
| Timing | At least 21 days before term end | Typically signed close to term end |
| Legal weight | Disclosure only — commits no one | Binding contract once signed |
| What it contains | Balance, rate, term, payment frequency | Full new mortgage terms and clauses |
| Your obligation | None — review and compare | Full repayment on the new terms |
For a broader walkthrough of what Canadian homeowners should know in the weeks before renewal, see our companion piece on what homeowners need to know about renewal.
— The 90-day renewal roadmap
The 21-day FCAC window is a regulatory floor, not a starting line. By the time the statement arrives, there are only three weeks left in the term — and if you want to switch lenders, that is tight. A better approach counts backward from the term-end date and starts preparation about ninety days out.
- 1Day -90Request a current mortgage summary from your lender showing the exact balance, remaining amortization, and the end-of-term date. This is not the renewal statement; it is a snapshot used for planning.
- 2Day -45Review the market. Compare what rates are generally available for a borrower in your situation, keeping in mind that posted rates and discounted rates can differ. Any rates reviewed at this stage are illustrative only — not a forecast.
- 3Day -21The renewal statement must arrive by this point. Open it the day it comes. Note the rate, term, and whether any auto-renewal language applies if you do not respond.
- 4Day -14If you are considering switching lenders, this is when a broker shops alternative lenders on your behalf. A broker's role is explained in our piece on why work with a broker.
- 5Day 0Sign the renewal agreement with your current lender or complete the switch to a new one.
The 90-day renewal roadmap
Count backward from your term-end date. Any rates reviewed at Day -45 are illustrative only — not a forecast.
— Common mistakes borrowers make at renewal
Six patterns show up repeatedly in files that come to a broker after a borrower has signed something they wish they had not.
- Signing the first offer. The rate on the statement is often the lender's opening position, not its final answer.
- Ignoring auto-renewal language. Some statements convert the mortgage to open, or to a default term, if the borrower does not respond in time.
- Waiting until the statement arrives to start shopping. The 21-day window is the regulatory floor, not the starting line. Three weeks is tight for a lender switch.
- Confusing the remaining balance with the payout figure. The payout can include interest to a specific date, discharge fees, and outstanding property taxes held by the lender.
- Assuming a switch always triggers a new stress test. Whether a stress test applies depends on insurance status and whether you stay with the current lender. More in our analysis of renewal payment shock.
- Overlooking payment frequency as a lever. Moving from monthly to accelerated bi-weekly at renewal can shorten the amortization without a formal prepayment.
— What changed: OSFI's 2024 renewal rule
The practical effect is that a borrower who might not pass the stress test today — because of lower income, a higher rate, or both — can renew with the current lender without re-qualifying. Switching lenders, by contrast, triggers a full re-qualification.
This creates a kind of friction at renewal: the current lender knows that re-qualifying elsewhere may be difficult, which can affect how aggressively they negotiate. Pegasus's analysis of the change is in our piece on OSFI's uninsured renewal rule.
Stay vs. switch: when the OSFI stress test applies at renewal
Who must requalify under OSFI B-20 — the greater of contract rate plus 2% or 5.25% — at renewal (2024 clarification).
— Frequently asked questions
Short, specific answers to the questions borrowers ask most often. For a wider set, see our FAQ page.
When is my bank supposed to send my mortgage renewal letter?
What has to be on my mortgage renewal statement in Canada?
Is the rate on my renewal letter the best I can get?
What happens if I don't sign and send back the renewal?
Can I switch to a different lender when my mortgage renews?
Do I have to go through the stress test again at renewal?
What's the difference between a renewal statement and a renewal agreement?
See your options before the statement arrives
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & References
- Financial Consumer Agency of Canada (FCAC) — Renewing your mortgage. https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html
- Cost of Borrowing (Banks) Regulations, Government of Canada. https://laws-lois.justice.gc.ca/eng/regulations/SOR-2001-101/
- Office of the Superintendent of Financial Institutions (OSFI) — Guideline B-20. https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-b-20
- Financial Services Regulatory Authority of Ontario (FSRA). https://www.fsrao.ca/
- Canada Mortgage and Housing Corporation (CMHC). https://www.cmhc-schl.gc.ca/