Mortgage Renewal Broker in Vancouver, BC
At renewal you can switch lenders without the stress test, as long as the balance and the amortization stay the same. That rule has covered uninsured mortgages since November 21, 2024. In Vancouver the tighter limit is often your home's value: East Vancouver's composite benchmark is down 10.0% over 3 years, and a lower value can push your loan past the 80% of value that most lenders need to take a switch.
Do I have to pass the stress test if I renew with my current bank?
No. Renewing with your current lender has never required you to requalify, and since late 2024 switching to a new lender at renewal doesn't either, as long as you keep the same balance and amortization.
| What you do at renewal | Stress test? |
|---|---|
| Renew with your current lender | No |
| Switch lenders, same balance and amortization (uninsured) | No, since November 21, 2024 |
| Switch lenders on an insured mortgage, adding up to $3,000 for costs | No, since December 16, 2024 |
| Switch and borrow more | Yes |
| Switch and stretch the amortization | Yes |
The new lender still reviews your file the way it would any new mortgage, so your credit and income matter. What's gone is the extra qualifying rate that used to lock many owners in with their current bank.
How does a lower home value affect my renewal in Vancouver?
When prices fall, your loan becomes a bigger share of your home's value. Above 80% of value, most lenders can't take an uninsured mortgage as a switch, so an owner who was comfortably under the line when they bought can find themselves over it at renewal.
Here's an example for a home that followed the East Vancouver composite benchmark, down 10.0% over the 3 years to August 2026.
- Value 3 years ago: $1,235,000
- Value today after a 10.0% drop: $1,111,500
- Mortgage balance at renewal: $900,000
- Loan as a share of value: 81.0%
- 80% of today's value: $889,200
- Lump sum to get back to 80%: $10,800
That owner has 2 choices: renew with the current lender, which doesn't need the 80% line, or pay down $10,800 at maturity so a switch is possible. Knowing which side of 80% you're on before the renewal letter arrives tells you whether you have negotiating room.
Should I switch lenders at renewal?
Switch when another lender's terms beat your renewal offer after costs. Many lenders cover the legal and appraisal cost of a switch, so the main cost is usually your current lender's discharge fee.
Price is one line of the comparison. The others decide what happens if your plans change mid-term:
- How the penalty is calculated if you break the mortgage (3 months' interest, or the interest rate differential)
- How much you can prepay each year without a penalty
- Whether you can take the mortgage with you if you move
- Whether the lender will add a line of credit later
The penalty comparison across 9 lenders shows how much that first line can vary on the same mortgage.
When should I start my mortgage renewal?
Start about 4 months before your maturity date. Many lenders will hold a rate for a switch for up to 120 days, which gives you a window to compare offers and still have time for the paperwork.
- Find your maturity date, balance and current terms on your last statement.
- Check where your value sits against the 80% line.
- Get your renewal offer and at least one outside offer in writing.
- Compare them on price, penalty terms and prepayment room.
- Sign the one that wins, or use the outside offer to negotiate with your current lender.
Can I renew early without paying a penalty?
Many lenders let you renew early without a penalty inside a set window before maturity, often around 120 days. Outside that window, ending your term early counts as breaking the mortgage and a penalty applies.
An early renewal with your current lender can lock in a rate before your term ends. Compare it with a switch at maturity before you sign, because renewing early with your current lender closes off the outside offers for the new term.
Fixed or variable at renewal?
Choose based on how much payment change your budget can carry and what you plan to do with the home during the term. A fixed rate keeps the payment steady, and a variable rate usually carries a smaller penalty if you need to break it.
If there's a chance you'll sell or refinance in the next few years, the penalty difference can matter more than the rate. The guide to renewing with plans to sell walks through that case.
Frequently asked questions
Can I add a line of credit when I switch at renewal?
- Adding new borrowing turns the switch into a refinance, which means the stress test applies and the loan can't go above 80% of value. You can switch first and add the line later if you qualify.
Does my income matter on a straight switch?
- Yes. The stress test is gone for a straight switch, and the new lender still checks that you can carry the payment. A drop in income since you bought can still affect the approval.
What does it cost to switch lenders?
- Your current lender usually charges a discharge fee, and provincial registration costs apply. Many new lenders cover the legal and appraisal cost of a straight switch, so ask for that in writing.
What if my mortgage is insured?
- Insured mortgages can switch without the qualifying rate since December 16, 2024, as long as you keep the amortization, take no equity out and add no more than $3,000 for costs.
What if my lender won't renew me?
- That's rare and it happens, usually after a missed payment or a change in the property. The renewal denied guide covers what to do next.