Key takeaways
- Renewing with the same lender, for the same or lower balance and without major changes, generally avoids the mortgage stress test.
- That can help borrowers whose income, debt or credit profile has changed since they first got their mortgage.
- About 69% of Canadians stay with their current lender at renewal, often by signing the first offer.
- Shopping around still matters: recent analysis found non-shopping renewers paid about $155 more per month on average, or roughly $9,300 over five years.
What changed at renewal
Renewing with your existing mortgage lender has become more attractive for some Canadians because of recent stress-test rule changes and regulator guidance. In general, if you renew with the same lender, keep the same or lower mortgage balance, and avoid major changes to the mortgage, you do not have to re-qualify under the mortgage stress test.
That is a meaningful change in a market where many homeowners are renewing at higher payments than they had before. It means your current lender may be the simplest path: often no stress test, no new full application, no income re-verification, minimal paperwork, and no legal fees in most cases.
Why staying put can be the right move
The no-stress-test renewal option can be especially valuable if your financial picture has changed since you first took out the mortgage. If your income has fallen, your debt has increased, or your credit profile has weakened, switching to a new lender could be harder because many borrowers still have to fully re-qualify when they move their mortgage.
When a stress test applies, qualification is generally based on the higher of 5.25% or your contract rate plus 2%, depending on the product and lender. For some households, that can make the current lender’s renewal offer an important safety net — even if it is not the cheapest option available.
The risk: easy does not mean inexpensive
The trade-off is that staying with your current lender can become expensive if you simply sign the first renewal offer. Recent coverage cited a 2025 survey showing about 69% of Canadians stay with their current lender at renewal, often by accepting that first offer. Ratehub.ca analysis quoted in the same coverage found borrowers who stayed without shopping paid about $155 more per month on average, or roughly $9,300 extra over five years, compared with borrowers who shopped and switched for a better rate.
- Treat your current lender’s offer as one quote, not the final answer.
- Start comparing options 4–6 months before your maturity date so you have time to negotiate or hold a rate.
- Ask whether switching would require full re-qualification, including the stress test.
- Compare the total cost, including any discharge, legal or setup costs, against the potential savings over the term.
A practical way to approach your renewal
The best renewal strategy is not automatically staying or automatically switching. It is using the no-stress-test advantage with your current lender as a backup while still shopping the market. If another lender can offer meaningful savings and you can qualify, switching may be worth it. If qualification is tight, your current lender’s renewal path may protect you from a much more difficult approval process.
Before you sign, a Finevo advisor can help you compare your renewal offer against options across 40+ Canadian lenders, estimate whether switching costs are likely to be outweighed by savings, and map out a renewal plan that fits your cash flow and qualification picture.
This article is general information about Canadian mortgages and is not financial advice. Rates, programs, and eligibility are subject to change and to lender and insurer qualification. Figures cited reflect market conditions at the time of writing. Speak with a licensed Finevo advisor for guidance specific to your situation.
