Mortgage Renewal Checklist BC: 7 Things to Check First

• Start early: The 2023 Canadian Mortgage Charter expects lenders to contact you 4 to 6 months before renewal, so use that window to compare lenders and hold a rate.
• Switching is easier: Since November 21, 2024, OSFI no longer requires the stress test for uninsured straight switches at renewal, which helps homeowners whose income has changed.
• No penalty at renewal: It's the cleanest time to refinance, consolidate debt or change your term, like a homeowner rolling high-interest card debt into the new mortgage.

Your mortgage renewal letter is easy to sign and forget, but in my experience it's one of the biggest money decisions you'll make this decade. Since federal consumer protection rules took effect in 2022, the Financial Consumer Agency of Canada (2022) has noted that federally regulated lenders must send your renewal statement at least 21 days before your term ends. Three weeks isn't much time to compare options.

I work with homeowners across BC, from condo owners near Coquitlam Town Centre to families in the Fraser Valley, and I've seen the same pattern again and again: people who start early keep more options open. Many five-year terms signed in 2021 are coming due now, so your new payment may look different. Below is the mortgage renewal checklist BC homeowners can work through before signing anything.

Start with two things: your exact renewal date and the offer your current lender sends. Knowing the date lets you shop and hold a rate months ahead. Reading the offer closely tells you whether it's competitive or just convenient. Most homeowners only look at the offer, and that's usually where money gets left behind.

1. Your Renewal Date and Timeline

Your renewal date is the anchor for everything else on this list. Find it on your annual mortgage statement or in online banking, then count back four to six months. The Government of Canada's Canadian Mortgage Charter (2023) expects lenders to reach out 4 to 6 months before your renewal with their terms. Nothing stops you from starting the conversation sooner.

Consider a couple on Burke Mountain whose five-year term ends next spring. If they start comparing in the fall, they have time to gather documents and look at several lenders. They also avoid a rushed decision during the final three weeks before their deadline.

Pro Tip: Many lenders will hold a rate for a few months on a switch, though policies vary. If rates rise while you're shopping, the hold protects you. If rates fall, it's often possible to request the lower rate before your mortgage funds.

2. Your Current Lender's Renewal Offer

The renewal offer is your lender's opening number, not necessarily its best one. In my experience, lenders know most people sign renewal paperwork because it's easy, so the first rate isn't always sharp. I've seen offers come in higher than what the same lender advertises to brand-new clients. Read the rate, term, rate type and payment, then compare them against the wider market.

Note: If you don't respond at all, your lender may renew you automatically into a term you didn't pick. Reply or call before your deadline, even if you plan to stay.

A quick mortgage checkup is an easy way to see how your offer stacks up. Because I compare banks, credit unions and alternative lenders, I can often show you whether your offer is competitive or worth negotiating. Sometimes your current lender will sharpen its pencil once it knows you have options.

Yes, and it's easier than it used to be. Many BC homeowners can now move their mortgage to a new lender at renewal without passing the stress test, as long as the balance and amortization stay the same. Your term length matters just as much, because it decides how much flexibility and penalty risk you carry for years.

3. Whether You Qualify for a Straight Switch

Straight switch eligibility is the check that has changed the most recently. Effective November 21, 2024, OSFI (2024) removed the stress test requirement for uninsured mortgages switching to a new federally regulated lender at renewal, as long as the loan amount and amortization don't increase. Insured mortgages were already covered by the 2023 Charter.

Here's what most articles skip: the new lender still reviews your credit, income and property. The stress test is gone for a straight switch, but the application isn't. Take a Port Coquitlam homeowner who went part-time last year. Before late 2024, having to qualify at the higher stress test rate could have kept them stuck with their current lender. Today, switching may be realistic.

Note: BC credit unions are provincially regulated and set their own switch policies, so it's worth asking each one directly.

4. The Right Term Length for Your Plans

Term length is really a question about where you'll be in a few years. Breaking a fixed mortgage early can trigger an interest rate differential penalty. I've seen that penalty run far higher than three months' interest at some lenders. Variable mortgages generally carry the smaller three-month penalty, which suits people who might sell or move.

Longer terms have a little-known protection. Section 10 of the federal Interest Act, published on the Justice Laws Website (2026), protects individual borrowers whose term is longer than five years. After year five, they can pay off the mortgage with no more than three months' interest as a penalty. That rule still applies in 2026.

A family on Westwood Plateau planning to stay a decade might like a longer term for that reason. Someone in a Burquitlam condo eyeing an upgrade could prefer a shorter one. Test a few scenarios with my mortgage calculators first.

The last three checks are your amortization and payment, your bigger financial goals, and the fine print in your contract. These shape your budget for the next several years. They're also where I see homeowners either save real money or lock in a problem they don't notice until much later.

5. Your Amortization and New Payment

Your remaining amortization tells you how many years are left before the mortgage is fully paid off. If you had a variable rate with fixed payments, look closely. I've seen clients discover at renewal that past rate increases quietly stretched their amortization. Their lender then needed a higher payment to get them back on schedule. Compare the new payment to your real monthly budget.

Note: Lengthening your amortization usually means refinancing and requalifying, which is different from a straight switch.

6. Your Bigger Financial Goals

Your goals deserve a seat at the table, because renewal is the one point in your term when you can make changes without a prepayment penalty. Planning a renovation, consolidating a car loan, or setting aside a line of credit toward an investment property? Raise it now. Consider a Maillardville homeowner carrying high-interest card debt. Folding it into a refinance at renewal could lower their overall monthly outflow.

You can read more on my mortgage renewal and refinancing services page.

7. The Fine Print and Your Paperwork

The fine print covers prepayment privileges, portability and how your mortgage is registered. The federal Financial Consumer Protection Framework Regulations (2021) have been in force since 2022. They require banks to disclose how prepayment charges are calculated, so find that clause before signing. Also check whether you have a collateral charge, because switching one can involve legal costs. Many lenders offer to cover standard switch fees.

Pro Tip: Gather your mortgage statement, property tax notice, recent pay stubs and a job letter early. If you run your own business, have two years of CRA Notices of Assessment ready. My self-employed mortgage options can give you extra help.

The best mortgage renewal checklist BC homeowners can follow comes down to this: start early, treat your lender's first offer as a starting point, and find out whether a straight switch is open to you. Then match your term, amortization and goals to the life you're actually planning. Signing the renewal letter without checking these seven things is where I see the most money left on the table.

If your renewal is coming up in the next six months, book your consultation and I'll compare your offer against lenders across BC. Expert Advice. Real Options. Time and Money Saved - And it Costs you Nothing. Reach out and I can lend a hand!