How to read a mortgage renewal letter
Your lender sends one number and a signature line. Here is what the letter is not telling you.
Rateshop Team · Aug 10, 2026 · 4 min read
A renewal letter is a retention offer, not a market rate. Lenders know that roughly seven in ten Canadians sign the first number they are sent, and pricing teams set that number accordingly.
Three things the letter omits
1. The rate is negotiable. The posted renewal figure usually sits 40 to 80 basis points above what the same lender would quote a new client with your file.
2. Switching is often free. On a straight switch — same balance, same amortization — most lenders will cover legal and appraisal costs to win your business.
3. You have 120 days. You can start shopping four months before maturity and hold a rate while you decide. There is no downside to holding.
What to do
Get one competing quote in writing, then take it back to your lender. Either they match it or you move. Both outcomes save you money.