Understand the difference between renewing, switching lenders, or refinancing your mortgage — and how to decide which option saves you the most money in Ontario.

If your mortgage term is ending — or you’re thinking about breaking it early — you may be wondering whether you should renew, switch lenders, or refinance your mortgage in Canada.

These options sound similar, but they serve very different purposes. Making the right choice can save you thousands of dollars.

Let’s break it down clearly.

What Is a Mortgage Renewal?

A mortgage renewal happens at the end of your term (typically after 3 or 5 years). You still owe money on your mortgage, and you must sign a new term agreement.

At renewal, you can:

• Stay with your current lender

• Negotiate a better rate

• Switch to a new lender (without increasing your mortgage amount)

If your financial situation hasn’t changed and you’re simply looking for a better rate, renewal is often the simplest option.

Before signing your lender’s first offer, use our MORTGAGE RENEWAL CALCULATOR to compare rates and potential savings.

What Is Refinancing?

Refinancing means replacing your current mortgage with a new one — usually to:

• Access home equity

• Consolidate debt

• Change amortization

• Get a lower rate mid-term

• Adjust your mortgage structure

Unlike renewal, refinancing may involve breaking your current mortgage early, which can trigger a prepayment penalty.

If you’re considering this option, use our REFINANCE CALCULATOR to estimate potential savings before making a decision.

Switching Lenders Mid-Term: Is It Worth It?

Switching mid-term can make sense if:

• Interest rates have dropped significantly

• Your penalty is low

• The savings over the remaining term outweigh the break cost

To evaluate this properly, calculate:

Savings over remaining term – penalty = net benefit

If the net benefit is positive and meaningful, switching may be worth it.

For personalized guidance, CONNECT WITH A LICENSED MORTGAGE AGENT NOW to review your numbers carefully.

Renewal vs Refinancing: Key Differences

Renewal

Refinancing

Happens at end of term

Can happen anytime

Usually no penalty

May include penalty

Mortgage balance stays the same

Can increase mortgage amount

Simpler approval process

Full requalification required

Which Option Is Best in Ontario?

In Ontario — especially in competitive markets like Ottawa — the right choice depends on:

• Current interest rates

• Your remaining term

• Your financial goals

• Your home equity position

Many homeowners automatically sign their lender’s renewal letter without comparing options. This is often a costly mistake.

Even a small rate difference can result in thousands saved over a full term.

Final Thoughts

Before renewing or refinancing your mortgage in Canada, take a few minutes to run the numbers.

Use our MORTGAGE RENEWAL CALCULATOR or REFINANCE CALCULATOR to compare scenarios, or CONNECT WITH A LICENSED MORTGAGE AGENT NOW for expert guidance.

Making the right move today could save you significantly over the next 3–5 years.

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