When to shop a mortgage renewal
A renewal letter is the lender's bid to keep the loan. It arrives months before maturity because the lender would rather you sign than shop. Several people in the October thread were in that window, with maturities from December 2026 out to March 2027.
What the letters looked like
| Who posted | Situation | Numbers they wrote down |
|---|---|---|
| Greatname_01, October 9 | TD renewal, maturity March 1, 2027 | 3-year fixed 4.54%. 5-year fixed 4.75%. 5-year variable 3.55% |
| joshisashark, October 7 | Scotiabank renewal, southern Ontario, February 2027 | 2-year fixed 4.11%. 3-year 4.27%. 5-year 4.46%. 5-year variable 3.62% (prime minus 0.83) |
| javil_10, October 7 | RBC renewal | 5-year variable 3.59%. Fixed offer 4.39%, term not stated |
| Anal_Iverson, October 6 | A hold, not a signed renewal | 4.44% on a 3-year fixed |
| Anal_Iverson, October 4 | First TD letter, Toronto, uninsured, about $450,000 | 3-year fixed 4.81%. 5-year variable 3.80% |
Read those as a spread, not a league table. The October 4 letter at 4.81% and the October 9 letter at 4.54% are both TD and both three-year fixed, on different files, a few days apart. Files move. So does the bond market. A hold at 4.44% expires. If you do not close inside the hold, you are back in the market.
A practical order
Open the letter and circle the maturity date, the balance, the prepayment privilege you would lose by switching, and any cash-back clawback. Lenders commonly start the conversation 120 days out. Some will talk at 150 or 180. The letter itself is the proof they will talk.
Price a switch before you accept. A straight switch keeps the balance and the remaining amortization and does not take new money. Since late 2024, an uninsured straight switch at renewal has not had to clear the minimum qualifying rate. The new lender still looks at the file. A refinance that increases the loan or stretches the amortization is a new application, and the stress test applies. Details are in the stress test guide.
If you are inside a fixed term and thinking of breaking early, get the penalty in writing before you fall in love with a lower rate. An interest-rate differential on a fixed mortgage can erase years of payment savings. A variable break is usually cheaper, and still not free.
October 28 changed the variable side of any letter that was quoted off the old prime. Ask the lender to reissue the variable number after they post the new prime. Then request cheaper rates if you want a second desk to shop the same balance and the same maturity.