Short answer first. Start shopping 4 to 6 months before your term ends, treat the renewal letter as an opening offer, and remember that at the end of a term you can usually switch lenders with little friction. Auto-signing is the single most expensive habit in Canadian mortgages. Here's the playbook, month by month.
Six months out: know your numbers
Dig out your current rate, your balance, your term end date, and your lender. That's the whole homework assignment. If you're the planning type, this is also the moment to think about whether the next term should look like the last one: different amortization, a fixed-variable switch, or pulling some equity while the file is open anyway.
Four to six months out: hold a rate
Most lenders will hold a rate for 90 to 120 days at no cost and no obligation. Getting a hold in place this early gives you insurance: if rates rise before your renewal date, you keep the held rate; if they fall, you take the lower one. There is no version of this that hurts you, which is why it's step one of any renewal I work on.
A rate hold costs nothing and obligates you to nothing. It's the closest thing to a free lunch in this business.
When the letter arrives
Your lender is legally required to send a renewal statement, and it usually shows up a few weeks to a few months before your date, often with a signature line that makes staying feel like the only option. It isn't. That first printed rate is rarely the lender's best, because the paperwork-path-of-least-resistance customer doesn't need convincing. Send me the letter before you sign it. If your lender's offer really is the best on the market, I'll say so and you can sign it with a clear conscience.
What switching actually involves
At the end of your term there's no penalty to leave. A straight switch (same balance, same amortization) is mostly paperwork: an application, income documents, and signatures, with the new lender typically covering or crediting the transfer costs. If you also want to change the mortgage itself, add money, stretch the amortization, that becomes a refinance with legal fees, so the earlier we talk, the better we can plan which one you actually need.
The mistakes I see most
Auto-signing the letter. The default option is priced like a default option.
Starting two weeks before the deadline. Everything is still possible, but rushed files lose leverage and options.
Chasing rate alone. A slightly cheaper rate with a brutal penalty formula can be the worse deal. Terms matter.
Forgetting life changed. New job, new baby, new plans to renovate. Renewal is the cheapest moment to restructure, because the file is already open.
Renewal is also the natural moment to consider a refinance or equity takeout if you have plans the house could fund. And if you're not renewing for a year or more, the renewals page has a reminder form: tell me your renewal month and I'll nudge you at exactly the right time.
Frequently asked questions
When should I start shopping my mortgage renewal in BC?
Four to six months before your term ends. That's when lenders will hold a rate for you, which protects you if rates rise while you compare options.
Is there a penalty to switch lenders at renewal?
At the end of your term, no prepayment penalty applies. A straight switch usually involves minimal cost, and new lenders often cover or credit transfer fees. Changing the mortgage itself, like adding funds, is a refinance and does involve legal costs.
Do I have to requalify if I switch lenders at renewal?
Yes, a new lender underwrites you fresh: income, credit, and the property. If staying put is easier for your situation, your existing lender doesn't typically requalify you for a simple renewal, and that trade-off is worth discussing before you decide.