Mortgage Renewal Rate Hold: The Rules at 7 Canadian Lenders
At renewal, the law guarantees the rate in the statement your lender sends at least 21 days before maturity. Here is what RBC, TD, BMO, Scotiabank, CIBC, National Bank and Desjardins offer before that, and how to compare an early offer with the market.
At renewal, the law guarantees you the rate in the renewal statement your bank must send at least 21 days before maturity; any earlier guarantee depends on your lender's own policy. That early renewal window runs from 120 days at RBC and TD to 180 days at BMO.
Our take: a mortgage renewal rate hold is only worth something if you compare it, on the same day, with what other lenders offer you for the same term. An early offer protects you against a rate increase, but it can also make you give up a lower rate than the market sooner than you need to. We show you both sides of the math.
What the law guarantees at renewal
You do get a written protection, even if it arrives late. According to the Financial Consumer Agency of Canada (FCAC), a federally regulated lender, such as a bank, must give you a renewal statement at least 21 days before the end of your term.
That statement must show:
- the balance or remaining principal at the renewal date;
- the interest rate;
- the payment frequency;
- the term;
- any charges or fees that apply.
The statement must also specify that the interest rate offered won't increase until your renewal date. That is the only rate guarantee the law gives you. Anything earlier, from 120 to 180 days depending on the bank, comes down to your lender's policy.
We want to stress one point: you don't have to accept the offer as is, or stay with your lender. The FCAC says you may qualify for a lower rate than the one in your renewal letter by telling your lender about offers from other institutions or brokers, with proof on hand.
Rate hold: three mechanisms not to mix up
The word "guarantee" covers three different protections, and each one helps you in its own way. We recommend asking your advisor which one is on the table before you accept anything.
Early renewal: you sign now
You sign your new term before maturity, and your rate is locked. It is the strongest protection against a rate increase. The trade-off: the new rate may apply right away. At National Bank, your new conditions take effect starting with your next payment.
We suggest you ask in writing when the new rate takes effect. That date decides whether the offer makes or costs you money.
Rate protection: you reserve without signing
Some lenders hold a rate without locking you in. National Bank protects your rate from 6 months before the end of your term: if rates rise, your rate is protected; if rates fall, you can request a better rate before maturity.
RBC offers a shorter version of the same idea: when you renew at maturity, its 30-day renewal rate guarantee protects you from a rate increase during the 30 days before your scheduled renewal date. TD, on the other hand, describes no separate rate guarantee on its renewal pages: ask your advisor in writing how long the rate in your offer holds.
A new lender's guarantee: you shop around
If you switch lenders at maturity, the new lender guarantees your rate. RBC, for example, guarantees the rate on a new loan for up to 120 days from the application date; if the mortgage isn't funded within that period, the guarantee expires.
That written guarantee is also leverage with your current bank. We see it as your best negotiating tool.
The policy at each major lender
You can gain up to two extra months depending on your lender. We have pulled together what each institution publishes on its website; your contract still has the final word.
| Lender | Penalty-free early renewal | Published rate guarantee or hold | Renewal offer |
|---|---|---|---|
| RBC | Up to 120 days before maturity | Rate held for 5 days in the online tool; 30-day guarantee before the scheduled renewal date | Renewal form sent about 3 weeks before |
| TD | From 120 days (4 months) before | No separate guarantee described on its renewal pages | Offer letter about 1 month before |
| BMO | As early as 180 days before | No separate guarantee described: early renewal locks your personalized rate | Personalized rates online within 180 days |
| Scotiabank | Up to 6 months before | No separate guarantee described on its renewal page | Not specified on its renewal page |
| CIBC | As early as 150 days before, if you qualify | No separate guarantee described on its renewal page | Offer sent about 30 days before |
| National Bank | Up to 4 months before | Rate protection from 6 months before the end of the term | Notice at least 21 days before |
| Desjardins | Renewal period: last 4 months of the term | No separate guarantee described on its renewal page | Desjardins contacts you as the period approaches |
Three takeaways:
- Widest window: BMO (180 days) and Scotiabank (6 months) let you lock your rate 2 months earlier than RBC and TD.
- Guarantee without signing: National Bank and RBC each describe a guarantee separate from signing, from 5 days in RBC's online tool to 6 months at National Bank.
- Late written offer: TD and CIBC send their renewal offer about 1 month before maturity, and RBC about 3 weeks before. Waiting for the letter leaves you little time to compare.
Can your bank refuse to hold a rate?
Yes, and you still have options. Before the window it publishes, your bank has no obligation to hold a rate. BMO says it plainly: renewal without penalty as early as 180 days before the end of your term, but a prepayment fee if you want to renew earlier.
Desjardins also notes that renewing before its 4-month renewal period often incurs prepayment charges on a closed mortgage.
If your bank won't hold a rate, we recommend two steps:
- Mark the date its window opens and act that day; the gap between 4 and 6 months explains most refusals.
- Ask another lender for a written rate guarantee. It caps your negotiation without committing you.
For the negotiation itself, our guide to negotiating mortgage renewal rates walks you through the steps.
Comparing an early renewal offer with the market
An early renewal offer received 4 to 6 months before maturity comes down to four calculations. We suggest you take your latest mortgage statement and follow this order.
- Compare like with like. A 5-year fixed offer should be compared with other 5-year fixed offers, not with a variable rate or a 3-year fixed mortgage.
- Price the months you give up. If the new rate applies right away and is higher than your current rate, you pay the difference on the months left.
- Price what the protection saves you. Estimate what a rate increase would cost on your balance before maturity.
- Add the switching costs. According to the FCAC, switching can involve setup, discharge, appraisal and administration fees; ask the new lender whether it will cover them.
Example: an offer 4 months before maturity
Take a $400,000 balance, a current rate of 2.19% and an early renewal offer at 4.29%, effective with the next payment. These rates are assumptions for the math, not rates on offer.
- Cost of the 4 months given up: about $400,000 × 2.10% × 4/12 = $2,800 in extra interest.
- Cost of a 0.25-point increase avoided: about $400,000 × 0.25% = $1,000 in interest over the first year of the new term.
- Bottom line: in this case, signing now costs you more than a modest increase would. A rate hold without signing keeps your old rate until maturity.
The math flips if your current rate is higher than the offer: every month you sign early then saves you money. Either way, we recommend asking in writing when the new rate takes effect.
Maturity in 4 to 6 months: your timeline
You still have time to compare, as long as you follow your lender's dates. We suggest writing them down today.
- 6 months out: the window opens at BMO (180 days) and Scotiabank; so does National Bank's rate protection.
- 5 months out: CIBC says you may qualify to renew as early as 150 days before maturity.
- 4 months out: RBC, TD and National Bank open penalty-free early renewal; Desjardins' renewal period begins.
- About 1 month out: TD and CIBC send their renewal offer; RBC sends its renewal form about 3 weeks before.
- 21 days out: the legal deadline for a federally regulated lender's renewal statement.
If you do nothing, the bank decides for you. RBC automatically renews your mortgage into an open term, and TD may renew it into a one-year open term, at a rate often higher than its fixed rate options.
Why a rate hold matters this fall
On October 28, 2026, the Bank of Canada raised its policy rate by 25 basis points to 2.50%, its first increase since July 2023. RBC, BMO and CIBC now list a prime rate of 4.70% on their rate pages (read November 9, 2026). When rates are moving up, a written hold caps what you pay at renewal, so ask for one as soon as your lender's window opens. The next Bank of Canada announcement is scheduled for December 9, 2026. To see what a higher rate does to your payment, try our mortgage renewal calculator, or browse our mortgage guides.
To get the next rate change in your inbox, sign up for the Ratesopedia newsletter.
Frequently Asked Questions About Mortgage Renewal Rate Holds
Can my bank raise the rate in my renewal statement?
No, if your lender is federally regulated, like a bank. According to the FCAC, the renewal statement must specify that the rate offered won't increase until your renewal date. You can still negotiate a rate lower than the one in the statement.
Rates drop after I renew early: what happens?
Once you sign the renewal agreement, the rate is the one in your contract. Before signing, ask whether your lender offers rate protection instead: at National Bank, it lets you request a better rate if rates fall before maturity. We recommend getting that answer in writing.
Do I need to requalify to renew with my bank?
Generally, no. RBC says you don't have to requalify when renewing an RBC mortgage, and TD says there's no need to reapply. Switching lenders, on the other hand, means a new approval based on the new lender's criteria.
Can I renew more than 6 months before maturity?
Yes, but usually with a penalty. BMO says renewing earlier than 180 days means paying a prepayment fee, and Desjardins says renewing before its 4-month period often incurs prepayment charges on a closed mortgage. Ask for the exact amount before you decide.
What happens if I don't respond to the renewal offer?
Your lender may renew your mortgage automatically, on terms that may not suit you. RBC renews into an open term, and TD may renew into a one-year open term, at a rate often higher than its fixed rates. According to the FCAC, the renewal statement must say if automatic renewal is planned.
Can a new lender hold my rate while I compare?
Yes, this is common for a new mortgage. RBC, for example, guarantees the rate on a new loan for up to 120 days from the application date, and the guarantee expires if the mortgage isn't funded in that time. Add the switching costs to your math before you decide.
Does the 21-day rule apply to every lender?
The FCAC describes it for federally regulated lenders, such as banks. If your mortgage is with a credit union or a provincially regulated lender, read your contract or ask for the timeline in writing. National Bank, for instance, says you will receive your renewal notice at least 21 days before the end of your term.
Does early renewal change my payment right away?
It depends on when the new rate takes effect. At National Bank, the new conditions apply starting with your next payment, so your payment changes before maturity. With other lenders, ask the question when you sign, because it drives the real cost of the offer.
Why can my payment go up when my rate goes down?
Your new payment is recalculated from the remaining balance, the new rate and the amortization used in the offer. If the offer is based on a shorter amortization or a different payment frequency, the payment can rise even though the rate drops. Ask your lender to recalculate the payment over the remaining amortization in your contract.