Chris Shortt
Mortgage Broker
BRX Mortgage Inc.
BCFSA X301291
Licence MB612777
Renewals
I am a mortgage broker in Nanaimo helping homeowners across Central Vancouver Island work out whether to sign their renewal offer, switch lenders, or do something else. The examples below are based on rules as of autumn 2026.
If your mortgage is with a bank or another federally regulated lender, they must send you a renewal statement at least 21 days before your term ends. It sets out the balance, rate, term, payment frequency and any fees.
Three weeks is not much time to compare offers or move lenders. And if you do nothing, some lenders may renew you automatically, sometimes into a shorter term or a rate that is not their best. It is worth treating the letter as the start of a conversation rather than a bill to pay. Should you just sign it?
When your term ends, you can generally stay, switch, or refinance. Here is how they typically compare.
| Stay | Switch | Refinance | |
|---|---|---|---|
| What changes | Rate and term | Rate, term and lender | Rate, term, lender and amount |
| Stress test | Not usually | Not usually, if a straight switch | Usually yes |
| Penalty at renewal | None at maturity | None at maturity | May apply if mid-term |
| Typical costs | Usually none | Some fees, often partly covered by the new lender | Legal and appraisal costs are common |
| Borrow more | No | No | Yes, within limits |
Under current rules, a straight switch to a new lender, with the same balance and amortization, generally no longer needs to pass the mortgage stress test. That makes switching a realistic option for more people than a few years ago. If you add money or extend the amortization, it usually becomes a refinance, and the stress test may apply again.
Many lenders will let you hold a rate for a new mortgage up to about four months before your renewal date. That is usually the best time to start, well before the letter arrives.
| When | What to do |
|---|---|
| About 4 months before | Start comparing. Many lenders can hold a rate from here. |
| About 3 months before | Gather documents in case you switch. |
| At least 21 days before | Your renewal letter should have arrived, if your lender is federally regulated. |
| Renewal date | Sign with your chosen lender, or you may be renewed automatically. |
Renewing very early with your current lender can sometimes trigger a penalty, so it is worth checking the terms before you sign anything ahead of time.
| A new appraisal | A new lender may want to check the value of your home. That is where Island property issues can surface. |
| Collateral charge mortgages | Some mortgages are registered in a way that can make switching cost more. Your statement or lender can tell you which type you have. |
| Discharge and legal fees | Your current lender may charge to release the mortgage. New lenders often cover some or all of the switching costs, but not always. |
| A late closing | A switch can close a day or two late if funds or title take longer to move. It can be worth asking your current lender to put your mortgage into an open term at maturity, so a short delay does not lock you into anything. |
| Property issues | Poly-B plumbing, an oil tank, or an older strata can affect which lenders will take your mortgage, even at renewal. |
Bank of Canada analysis in 2025 estimated that many five-year fixed mortgages renewing in 2026 would see higher payments than before. Your situation will depend on your balance, your current rate and what is available when you renew.
Send me your renewal letter, or just your renewal date, balance and current lender. I compare it with what other lenders may offer, and tell you plainly whether switching is worth the effort.
If staying with your current lender is the better choice, I will tell you that too.
These are general examples based on rules as of autumn 2026. Rules and lender policies change, and every file is different. I will confirm what applies to you.
Nothing to fill in first, and no credit check to book. Bring whatever questions you have got.