My Ontario mortgage renews in early 2027. Can I lock in a rate now?

In most cases, yes. Many lenders let you renew a few months before maturity. If you're thinking of moving to another lender, you can often apply now and get a rate held for a while. How early you can renew, whether there's a penalty, and how long a rate is held all depend on your lender and contract, so call and get the answer in writing. If your term ends between January and March 2027, November and December 2026 is the time to start.

Why start now

In late October 2026, the Bank of Canada raised its rate by 0.25 for the first time in three years. As Yifei has said on video, the 2022 cycle saw seven increases in one year, and nobody knows how many this one will bring. People he knows at the big banks have also told him fixed rates have recently moved up.

When rates are rising, settling your number a few months early at least takes the guesswork out. If you wait for the lender's renewal letter, you may have only a few weeks left to shop.

Three ways to handle it

Federally regulated lenders must send your renewal statement at least 21 days before the term ends. Start well before that letter arrives; by then there's little time to compare.

Fixed or variable: Yifei's rule of thumb

Answering a follower moving from one big bank to another at renewal, Yifei said:

• If fixed rates are around 3.6%, consider locking in for five years.
• If fixed is above 4%, you could stay variable and lock in when the Bank of Canada makes its first 0.25 increase.
• Another follower was offered a 3-year variable at around 3.5% or a 3-year fixed just under 4%. Yifei's view: under 4%, if you want certainty, take the fixed.

These were calls based on the rates at the time, not a formula. Yifei has gone back and forth on it at home too, weighing whether to switch his own variable to fixed and whether to take three years or five. How long you'll stay, whether you might sell, and how tight your cash flow is all matter.

Shop your renewal yourself

In Yifei's experience, many mortgage brokers aren't keen on straight renewals because there's little in it for them. So do the legwork:

1. Ask your lender how early you can renew, whether early renewal carries a penalty, and what rate they'll give.
2. Get quotes from two or three other lenders, including how long they'll hold the rate and any fees.
3. Take a written competing offer back to your lender. Some will match.
4. Before signing, read the prepayment penalty, annual prepayment limits and portability terms.

Frequently asked questions

Do I have to pass the stress test again to switch lenders?

Since November 2024, OSFI no longer requires the minimum qualifying rate for an uninsured, stand-alone mortgage that moves straight from one federally regulated lender to another with no increase in the loan amount or remaining amortization. Insured mortgages, moves to lenders outside federal regulation, or switches with extra borrowing can be different, so confirm your own case with the lender.

Is there a penalty for renewing early?

It depends on your contract. Some lenders let you renew with them within a set period before maturity without a penalty. Switching lenders mid-term, or renewing early outside what your lender allows, can trigger a prepayment penalty. Go by your contract and the lender's written answer, and have a lawyer review the contract if you're unsure.

Want help comparing offers?

Tell me about your situation and I'll tell you straight what I'd do. Reach Yifei (RE/MAX) at efay.ai.

Sources

• Financial Consumer Agency of Canada, renewing your mortgage: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html
• Office of the Superintendent of Financial Institutions, uninsured straight switches exempt from the MQR: https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/osfi-exempts-uninsured-mortgage-straight-switches-prescribed-mqr-implements-portfolio-lti-limits
• Bank of Canada, rate announcement October 28, 2026: https://www.bankofcanada.ca/2026/10/fad-press-release-2026-10-28/
• Bank of Canada, rate announcement December 7, 2022: https://www.bankofcanada.ca/2022/12/fad-press-release-2022-12-07/