The classic Quebec scenario: your 5-year term is ending, the bank sends you a letter offering a new rate, you sign, and you're locked in for another 5 years. It's fast. It's convenient. And it's rarely the best financial decision available to you.
This guide explains what to do in the 6 months before your maturity date to take back control. No specific rate numbers here — yours depends on your file, and only an AMF-licensed mortgage broker can present the actual rates available to you.
Why 6 months and not 30 days
Canadian lenders typically offer a rate hold for around 120 days approaching renewal. If you wait for your bank's letter — often sent 30 to 45 days before maturity — you have very little time left to shop. The bank holds all the leverage; you have almost none.
At 6 months out, you have time to:
- Read your current contract carefully (penalty formula, portability, prepayment privileges).
- Ask an AMF-licensed broker what other lenders would offer for a file like yours.
- Decide whether to renew with your current lender or transfer at maturity — with no penalty either way.
The 4 documents to gather
Before the call with a broker, dig out:
- The original mortgage document (notarial deed of loan) — to verify the type of registration (conventional mortgage vs collateral charge) and the penalty conditions.
- Your last two annual mortgage statements: current balance, current rate, exact maturity date.
- Your municipal valuation notice (and ideally the current estimated market value if available).
- Your latest tax slips — T4 or CRA Notice of Assessment if T2125 income.
With these four documents, the broker can estimate what's possible without guessing. And you walk into the bank conversation knowing what's on the table before you pick up the phone.
What your current contract reveals
Before shopping, read your contract for two critical points:
1. The penalty formula. If you have a fixed rate, any break before maturity triggers an IRD penalty (interest rate differential). Some lenders use their posted rate in the formula — far more punishing than the discounted rate you actually received. If you're considering exiting early, knowing this formula changes the decision entirely.
2. The type of mortgage registration. A conventional mortgage transfers cleanly at maturity (transfer fees absorbed by the new lender). A collateral charge (common at TD, Tangerine, and some credit unions) typically requires a full new notarial deed for a transfer — fees jump to $1,500-2,500. This detail is rarely mentioned by the bank at renewal time.
The 3 most common mistakes
1. Signing the bank's first offer without reading it
The renewal letter is usually pre-checked on the longest term and the posted rate — which is rarely the best rate the bank could offer if pressed. They know most clients sign without digging. You don't have to.
2. Assuming staying is always simpler
Transferring to another lender at maturity has no penalty, and most lenders absorb the transfer fees to win your file. The "simplicity" of staying has no real economic value in most cases — it's a perception the banks carefully cultivate.
3. Not checking if your profile has improved
Your file may have changed for the better since the last term:
- Salary increase or debt reduction → better TDS/GDS ratios.
- Property appreciation → better loan-to-value.
- Proven employment stability → access to stricter but cheaper A lenders.
An AMF broker sees those changes. A bank trying to retain you won't volunteer them.
The ideal timeline — week by week
| When | What to do |
|---|---|
| 6 months out | Gather the 4 documents. First call with an AMF broker. |
| 5 months out | Ask for an assessment of options at multiple lenders (the broker runs this in parallel). |
| 4 months out | Compare the offers received. Identify whether transfer or staying is the better option. |
| 3 months out | Final decision: stay (with what negotiation?) or transfer (to which lender?). |
| 2 months out | If transferring: notarial steps, assignment deed, coordination. |
| 15 days out | Final confirmation. Re-set automatic payment if lender changes. |
| Day of maturity | Sign the new term. No penalty, whether you stay or go. |
Notice that the bank's letter never triggers the decision in this sequence. That's the key shift.
The real savings from 5 minutes you don't take
A concrete illustration for a $300,000 mortgage, 5-year term:
| Scenario | Rate | 5-year interest |
|---|---|---|
| Bank's posted rate (no negotiation) | 5.39% | — |
| Rate after negotiating with your bank | 5.09% | Save ~$4,500 |
| Rate via broker comparing 30+ lenders | 4.74% | Save ~$9,200 vs posted |
These figures vary by market and profile — but the order of magnitude is representative. Signing the renewal letter takes 2 minutes. Seriously shopping takes 3-4 exchanges with a broker over 2-3 weeks. The effort-to-reward ratio is rarely this favorable.
What Courteo does
Courteo is not a broker. We connect you with an AMF-licensed mortgage broker who knows Quebec renewal files. The broker presents the rates actually available, negotiates with lenders, and prepares the transfer file if that's what suits you.
You don't need to answer your bank's letter tonight. You have 6 months — use them.
Frequently asked questions about mortgage renewal
Can I negotiate with my current bank without a broker?
Yes — you can call your bank, ask for their best rate, and apply pressure by mentioning you're shopping. In practice, you'll often get 0.1-0.2% better than the posted rate. A broker comparing 30+ lenders typically gets 0.3-0.5% better. Whether the difference justifies the process is your call — but on a $300,000 balance over 5 years, 0.3% is roughly $4,000-5,000 in interest.
Can my bank charge me fees if I don't renew with them?
No. At maturity, you're free with no charges. The only possible fee in a standard transfer is the assignment fee ($250-600), typically absorbed by the incoming lender. If your mortgage is registered as a collateral charge, notarial fees can be higher — which is why verifying the registration type early matters.
What if my file has deteriorated since the last term (lower income, new debt)?
Tell the broker honestly. Your current lender may renew automatically without full re-qualification in some cases — sometimes the advantage of staying. A B-tier lender can also be a transitional solution if A lenders no longer fit.
Can I extend the amortization at renewal?
Yes, if your original down payment was ≥ 20% (conventional, uninsured mortgage). You can re-amortize over 25 or 30 years to reduce the monthly payment. If the mortgage was insured (CMHC, etc.), extending amortization is more restricted. A broker verifies the rules specific to your file.