April 26, 2026 | Posted by: Guriqbal Chahal, MBA, PMP, Mortgage Broker
Why 2 Out of 3 Canadians Overpay on Their Mortgage Renewal Rate — And Exactly What to Do About It
Every so often, a mortgage statistic comes along that stops you cold. A landmark survey by Manulife Bank is one of them — and if you’re approaching your mortgage renewal date, it could save you thousands of dollars.
The finding? 65% of Canadian homeowners did not compare their mortgage renewal rate from more than one lender the last time their mortgage came up for renewal. In a market where even a quarter-point difference can cost you over $4,000 per term, that’s a staggering amount of money left on the table.
The Mortgage Renewal Rate Survey: What Canadians Are Actually Doing
Manulife Bank surveyed 1,000 Canadian homeowners between the ages of 30 and 59. Among those with an active mortgage, here’s how they handled their most recent renewal:
- 20% stayed with their current lender after maturity and did not negotiate at all
- 45% stayed with their current lender and tried to negotiate — but did not shop around with other lenders
- 35% compared mortgage renewal rates from several lenders and chose the best overall option
Put simply: only 1 in 3 Canadians actually shops for the best mortgage renewal rate. The other two-thirds hand their lender a quiet victory — and a larger slice of their paycheque.
Interestingly, the youngest group surveyed (ages 30–39) was the most likely to shop around (41%), yet was also the most likely to accept their lender’s offer without any negotiation at all (24%).
Why Do So Many Canadians Accept the First Mortgage Renewal Rate They’re Offered?
We asked Doug Conick, President & CEO of Manulife Bank, to explain this behaviour. His answer was candid:
“Most people lead very busy lives and may not have the time or expertise to fully investigate their options. Through our debt survey we’ve found that only about 3 out of 10 Canadians work with a financial adviser to manage their debt more effectively.”
“With busy lives and a lack of advice for most, this decision often gets left until very close to the renewal date, causing borrowers to follow the path of least resistance and renew with their current lender.”
“The unfortunate thing is that this could end up costing them a lot of extra money and keep them in debt longer than they need to be.”
— Doug Conick, President & CEO, Manulife Bank
In other words: procrastination and a lack of guidance are the two biggest reasons Canadians overpay on their mortgage renewal rate. When your renewal letter arrives and the clock is ticking, signing and sending it back feels like the easy answer — even when it’s the costly one.
How Much Does Accepting a Below-Market Mortgage Renewal Rate Actually Cost You?
The numbers are more painful than most people realize. Homeowners who auto-renew — accepting whatever rate their bank initially offers — often end up paying 0.50% to 0.75% above the best available mortgage renewal rate. In many cases, even more.
Bank “special offer” renewal rates are a prime example. These are frequently marketed as exclusive deals, yet they commonly sit 50 to 80 basis points above competitive rates available through independent mortgage brokers or alternative lenders. A rate labelled “special” by your bank may be anything but.
The Real Dollar Impact of a Higher Mortgage Renewal Rate
| Rate Difference | Mortgage Balance | Extra Interest Paid Over 5 Years |
|---|---|---|
| 0.25% (25 bps) | $200,000 | ~$4,000+ |
| 0.50% (50 bps) | $200,000 | ~$8,000+ |
| 0.75% (75 bps) | $200,000 | ~$12,000+ |
| 0.80% (80 bps) | $400,000 | ~$18,000+ |
Every dollar you overpay in interest is a dollar that could have gone toward prepaying your principal, building home equity faster, or simply staying in your pocket.
How to Get the Best Mortgage Renewal Rate in Canada: 5 Practical Steps
1. Start Early — At Least 90–120 Days Before Your Renewal Date
Most Canadian lenders allow you to lock in a new mortgage renewal rate up to 120 days before your term ends. Starting your search early removes the time pressure that causes most borrowers to simply accept the first offer.
2. Don’t Accept the First Rate Your Lender Sends
Your lender’s initial mortgage renewal offer is rarely their best rate. Think of it as an opening position in a negotiation. You have the right to ask for better — and with competing offers in hand, you’ll get it.
3. Compare Rates From Multiple Lenders
The best mortgage renewal rate is found by shopping, not by assuming loyalty pays off. Get quotes from at least 2–3 lenders: your current bank, a credit union, and a monoline lender through a broker. You’ll quickly see where the real market sits.
4. Work With an Independent Mortgage Broker
An independent mortgage broker has access to dozens of lenders and can compare mortgage renewal rates across the market in the time it takes to make a phone call — usually at zero cost to you. Even if you ultimately decide to stay with your current lender, a broker gives you the market intelligence to negotiate from a position of strength.
5. Use Prepayment Privileges Strategically
The same Manulife survey found that 70% of mortgage holders made no extra payments in the past year — most commonly citing a lack of available funds. If your budget allows any flexibility, even modest lump-sum prepayments at renewal time can significantly reduce your amortization period and total interest paid.
The Bottom Line on Mortgage Renewal Rates in Canada
The evidence is clear: the majority of Canadian homeowners are overpaying on their mortgage renewal rate simply because they don’t shop around. Whether driven by busy schedules, lack of advice, or the path of least resistance, the financial cost is real and avoidable.
You don’t have to switch lenders to benefit from shopping your renewal — but you do need to know what the market offers before you sign anything. A single conversation with an independent mortgage professional before your renewal date can easily be worth thousands of dollars over your next term.
Your mortgage renewal rate is negotiable. Act like it.
Ready to Stop Overpaying?
Talk to a Mortgage Broker Who Works for You
Before you sign your next mortgage renewal, get a free second opinion from
Guriqbal Chahal, Mortgage Broker at Dreamhouse Mortgage.
One conversation could save you thousands over your next term.
Frequently Asked Questions About Mortgage Renewal Rates
What is a mortgage renewal rate?
A mortgage renewal rate is the interest rate your lender offers when your current mortgage term ends and you choose to continue (renew) your mortgage. The renewal rate can be significantly different from the best available market rates — which is why comparing offers before renewing is so important.
How much money can I save by shopping my mortgage renewal rate?
Even a 0.25% difference in your mortgage renewal rate can save you over $4,000 in interest over five years on a $200,000 mortgage with a 20-year amortization. Many borrowers who auto-renew end up paying 0.50%–0.75% above the best available rate, costing $8,000–$12,000+ over the term.
How far in advance should I start comparing mortgage renewal rates in Canada?
Start comparing mortgage renewal rates at least 90–120 days before your renewal date. Most Canadian lenders allow you to lock in a rate 120 days in advance, giving you time to explore all options and negotiate from a position of strength.
Is my bank’s “special offer” renewal rate actually the best rate?
Typically, no. Bank “special offer” renewal rates are often 50–80+ basis points above the most competitive rates available through brokers or alternative lenders. Always compare your bank’s offer against the open market before signing your renewal.
Can I negotiate my mortgage renewal rate with my current lender?
Yes — and you should. Lenders will often improve their renewal rate offer when asked, especially if you present a competing quote. An independent mortgage broker can provide that competing offer quickly and at no cost, giving you the leverage needed to negotiate a better rate.
What percentage of Canadians actually shop for the best mortgage renewal rate?
According to a Manulife Bank survey of 1,000 Canadian homeowners aged 30–59, only 35% compared mortgage renewal rates from more than one lender. The remaining 65% either auto-renewed without negotiating (20%) or stayed with their current lender without shopping around (45%).
Should I use a mortgage broker to get a better renewal rate?
Yes. An independent mortgage broker has access to dozens of lenders — banks, credit unions, and monoline lenders — and can compare mortgage renewal rates on your behalf at no cost to you. Even if you stay with your current lender, a broker gives you the market data needed to negotiate the best possible renewal rate.
