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A renewal statement is the notice a lender sends before a mortgage term matures, showing the outstanding balance, the maturity date, and a proposed new rate and term. It is the lender’s default offer — borrowers are free to compare it against other lenders before the term ends rather than accept it automatically.
A renewal statement is the lender’s opening offer, not a bill and not a binding requirement. It lays out the balance owing, the maturity date, and a proposed new rate and term — usually the lender’s posted or retention rate rather than its most competitive offer.
Reviewing the statement early, well before the maturity date, gives a borrower time to compare it against other lenders’ offers through a switch or transfer. Waiting until the last few days narrows the options and can mean defaulting into the incumbent lender’s rate simply because there wasn’t time to shop.
If the plan is to move lenders, the renewal statement’s maturity date is the deadline that matters — the new lender’s paperwork, and in many cases a new rate commitment, need to be in place before that date to avoid a gap or a penalty.
It’s a default offer, not a rule: the rate on a renewal statement is generally the lender’s posted or retention rate, not necessarily the best rate available in the market.
Comparing lenders needs time: reviewing a renewal statement early leaves room to run a switch or transfer to a new lender before the maturity date.
Straight switches got easier: since November 21, 2024, OSFI doesn’t require re-qualification at the minimum qualifying rate for a straight switch of an uninsured mortgage at renewal (same amount, same amortization, new lender).
Who reviews it: mortgage agents (Ontario, FSRA), submortgage brokers (BC, BCFSA), mortgage associates (Alberta, RECA), and courtiers hypothécaires (Quebec, AMF) compare a client’s renewal statement against other lenders before advising.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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