Renewing means signing a new term with your current lender when your existing term ends, usually with little paperwork. Switching means moving your mortgage to a new lender at renewal time, at the same loan amount and amortization, without borrowing more. Refinancing means changing your mortgage terms mid-term or at renewal, often to borrow more against your home equity, and it always requires full requalification. All three can happen at different points in your mortgage life cycle.
| Feature | Refinance | Renew | Switch |
|---|---|---|---|
| When it happens | Any time, though most common mid-term | At the end of your existing term | At the end of your existing term |
| Changes loan amount or amortization | Yes, this is often the point | No | No, must stay the same |
| Requires income and credit requalification | Yes, always | Not with your existing lender | Sometimes, depending on lender |
| Subject to the OSFI stress test | Yes, always | No, not with existing lender | No, if it's an eligible straight switch with no increase in loan amount or amortization |
| Insured mortgage status | No, always uninsured, requires 20% equity minimum | Keeps existing insurance status | Keeps existing insurance status if eligible |
| Lender relationship | Can stay or change lenders | Stays with current lender | Moves to a new lender |
| Typical reason to choose it | Access equity, consolidate debt, change mortgage structure | Simplicity, low effort, avoid stress test | Better rate or terms without new borrowing |
The verdict
If you're happy with your current lender's renewal offer and don't need to borrow more, renewing is the simplest path and involves no requalification. If you want a better rate elsewhere but don't need extra funds, switching is worth exploring, especially since an eligible straight switch at renewal can avoid the stress test entirely. If you need to access home equity for renovations, debt consolidation, or another purpose, only a refinance will do that, but be prepared for full requalification against the greater of your contract rate plus 2% or the 5.25% benchmark. A mortgage broker can review your specific numbers and show which route puts you furthest ahead.
Have questions about your situation? An advisor can walk you through it.