BC Mortgage Renewal Guide 2026

Why banks send a "convenience" renewal letter

Renewal letters arrive 30–90 days before maturity with a rate that's almost always above the bank's best discretionary offer. Banks know that most homeowners just sign — it's a profitable retention tactic. The rate offered is often 30–80 bps higher than what the same bank would quote a new applicant.

If you sign without negotiating or shopping, you leave money on the table. If you call and negotiate, you almost always get a better rate. If you shop competitively, you usually do better still.

The 6-month-out playbook

6 months out — start the audit

Pull your current rate, balance, maturity date, and amortization remaining. Check your beacon score. Note any major life changes since your last application (job change, income change, new debts, divorce, business windup).

4 months out — shop the market

Get 3–5 competing quotes. A broker can do this with one credit pull. Don't rely on rate comparison websites — the rate you actually qualify for depends on your specific file, not the headline.

3 months out — negotiate with your current lender

Call your current bank and ask for their best discretionary rate. Tell them what you've been quoted elsewhere. Many banks will match or come within 5–10 bps. If they won't, you have a credible alternative.

2 months out — decide and lock

Either accept your current bank's improved offer or move to a competing lender. Locking 60 days out gives you protection if rates climb in the final weeks.

At maturity — switch or renew

A switch to a new lender at renewal is usually free (the new lender covers legal and appraisal). A refinance (changing loan amount or amortization) costs $1,000–$2,000 in legal + appraisal but no penalty since you're at maturity.

What if you don't qualify at your current bank anymore?

This is the painful renewal scenario — 5 years ago you qualified, now stress test rates are higher, income has shifted, or credit has slipped. Your options:

• Stay with current lender as collateral charge renewal. Your existing bank doesn't always re-qualify you at renewal (no new advance, just renewal of existing balance). You may automatically renew at their posted rate even if you couldn't qualify as a new applicant. Confirm in writing.
• Move to a B-lender. If you've slipped out of A-lender qualifying, a B-lender will take you on contract-rate qualification rather than stress test on insured refinances. Rate 6.5–8.5%, 1% lender fee.
• Extend amortization. Moving from 25 to 30 years drops the qualifying payment significantly. B-lenders allow 30+ year amortizations.
• Private bridge if nothing else works. 12-month private while you rebuild credit or income, then refinance back to bank or B-lender.

BC-specific considerations

• BC credit unions often beat the big 5 banks on renewal. Vancity, Coast Capital, Prospera, BlueShore — worth quoting alongside the banks.
• Property tax assessment matters. If your BC Assessment value dropped, this can affect refinance eligibility (LTV pushes up). Time your refinance for after a favorable assessment cycle if you can.
• Self-employed renewals are easier than self-employed first mortgages. Lenders weight your renewal less harshly because you have a payment history with them. Don't assume "self-employed = stuck at current bank."

What to ask the bank or new lender

1. What's your best discretionary rate (not the posted rate) for my specific file?
2. What does the all-in cost over the new term look like, including any fees?
3. Are there any prepayment penalty changes if I want to pay extra?
4. Can I extend amortization to lower monthly payment if needed?
5. Is this a switch (no cost) or a refinance (legal + appraisal cost)?

FAQ