Best 3-Year Fixed Mortgage Rates In Canada

Mortgage renewal extends your contract to a new term with the same lender without increasing the loan amount or extending the amortization. 

You will continue the remaining amortization period and the loan balance into the renewed mortgage term.

Let’s say your 3-year fixed-rate mortgage just expired. The details of your mortgage as of today are as follows:

• The mortgage balance is $250,000;
• The remaining amortization is 22 years;
• Rate of 2.5%; 
• Mortgage term: two years;
• Property market value now is $550,000

You can only change the mortgage term, and the lender may change the mortgage rate if you refinance. The current mortgage balance and current amortization will not increase. 

By law, lenders must provide you with a renewal letter at least two business days before the end of your mortgage term. 

The lender is not obligated to renew your mortgage; likewise, you are not obligated to accept the renewal offer. 

You can move your mortgage to a new lender at the end of the mortgage term in a switch. The new lender will require you to provide the name of the default insurance provider and your mortgage loan account number with that default insurance provider.

The renewal statement will contain the following information: 

• the balance or remaining principal at the renewal date; 
• the interest rate; 
• the payment frequency; 
• the term; and 

• any charges or fees that apply.