Ontario’s Best Mortgage Renewal Rates

TL;DR

• Your Insured Status is a Superpower: Putting less than 20% down forced your mortgage to be default-insured, which is the key to getting the market’s lowest interest rates.
• Lenders See Zero Risk: The insurance protects the lender, allowing them to skip the “risk fee” and offer you cheaper rates than conventional mortgages.
• The “Straight Switch” is Easy: You can move your mortgage to a new lender (a straight switch) to get a better rate without changing your loan amount.
• Do Not Sign Blindly: Your current bank will send a high offer; we use the lowest insured market rates to force them to compete.
• Work With an Expert: Work with a dedicated mortgage agent 6 months early to shop the entire market and lock in your absolute best renewal rate.

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If you’re an Ontario homeowner facing mortgage renewal, you’ve likely received that letter from your bank—and maybe felt a bit of dread. Current interest rates are a reality we all have to face.

But if you put 5% down when you bought your home (or less than 20% down), you have what’s called an “insured mortgage.” More about that later.

Your insured mortgage now gives you a massive advantage. It opens the door to the lowest interest rates in the country and the power to switch lenders easily.

Let’s find out why your insured mortgage is a secret weapon at renewal and how partnering with a dedicated mortgage agent (like me!) is the best way to secure your financial future.

High-Ratio vs. Conventional: Understanding the Rate Difference

In the Canadian housing market, a mortgage is categorized based on its Loan-to-Value (LTV). LTV is the loan balance as a percentage of the total property value. So if your property value is $100,000 and you still owe $80,000 on the mortgage, your LTV is 80%.

• High-Ratio (AKA Insured) Mortgage: Your initial down payment was less than 20% (LTV is greater than 80%). This type of mortgage is mandated by law to carry mortgage default insurance from a provider like CMHC, Sagen, or Canada Guaranty.
• Conventional Mortgage: Your down payment was 20% or more (LTV is 80% or less). Insurance is not mandatory.

Why Insured Mortgages Access the Market’s Absolute Lowest Rates

Lenders view an insured mortgage as virtually zero-risk.

The required insurance acts as a guarantee: if you default, the insurer pays the lender the outstanding principal. This lack of risk is attractive to lenders, so they offer more competitive interest rates for insured mortgages.

This means you usually get a better interest rate with 5% down vs 20% down.

Insured mortgages are consistently priced at a lower rate than conventional (uninsured) mortgages. There is a caveat here if your LTV is 65% or lower. If you’re unsure of your LTV, let’s chat and figure out what your options are.

This is your Insured Advantage: Even if your home value has soared and you now have 50% equity, your mortgage retains its original insured status (unless you’ve refinanced your home at all). This means at renewal, you still qualify for that lower-rate pricing tier.

Need a refresher on how that insurance works? Dive into our guide: What is CMHC Mortgage Insurance?

The “Straight Switch” Strategy: Your Key to a Better Rate

Most homeowners make the mistake of simply signing their bank’s renewal letter. This is the single easiest way to leave thousands of dollars on the table.

Your superpower lies in the ability to execute a straight switch.

A straight switch (or transfer) is the process of moving your existing mortgage balance and terms to a new lender without increasing the principal loan amount or extending the amortization period.

For an insured mortgage, the straight switch is a dream scenario for your new lender: they get a low-risk client with a guaranteed asset. This generates competition among lenders for your business.

Don’t Settle: Why Accepting Your Lender’s First Offer is a Mistake

Your current lender is hoping you don’t want to bother with their letters. They will send a renewal offer that is often nowhere near their best available rate, knowing that most people will just sign it to avoid the perceived hassle of shopping around.

You should never accept your current lender’s first offer.

Your insured status means every lender in the country wants you as a client. By working with a dedicated mortgage agent, you gain the ability to shop the entire market and use those low, insured rates as leverage. We find a lender that fits you best and make the switch for you.

This is your leverage. This is how you take control of your mortgage renewal process. Read more about getting the best deal here: The Ultimate Guide to Mortgage Renewal in Ontario.

Your Strategic Renewal Plan: Partnering with a Dedicated Mortgage Agent

Securing the absolute best insured rate is a competitive game, and you need an experienced mortgage agent in your corner. My role is to simplify this process and make your Insured Advantage work for you.

Step 1: Start 6 Months Early with Your Agent

The best time to start thinking about your renewal is six months before your maturity date. This gives us ample time to get a strategy in place and, more importantly, secure a rate hold.

We will begin by reviewing your entire financial picture to determine your goals—whether you want the lowest payment or to pay off your mortgage quickly. Want to see how different rates impact your budget? Use our Mortgage Calculator right now to get an idea of your new payments.

Step 2: Leverage the Insured Rate Advantage Across the Market

This is where your mortgage agent provides the most value. Unlike a bank specialist who can only offer their institution’s rates, I have access to dozens of lenders—from the major banks to smaller, more aggressive credit unions and monoline companies.

1. I shop around for the best rates.
2. You get a full breakdown of different options that fit your goals and financial situation.
3. You choose which lender you would like to switch to.

Step 3: Secure the Best Rate & Terms

Getting the lowest rate is only half the battle. We also need to ensure the new mortgage includes terms that support your long-term goals.

We’ll look closely at:

• Flexible pre-payment options.
• Any fees or penalties for breaking the mortgage early (if you chose to sell your home or refinance in the future).
• Your preference for a fixed or variable rate.

If you’re focused on reducing your monthly payments, we can strategize on ways to achieve that while keeping your terms flexible. Learn more here: How to Lower Your Mortgage Payment When You Renew.

Ready to Master Your Mortgage Renewal?

The anxiety you feel about rising interest rates is real, but your ability to fight back is even greater. Your high-ratio mortgage has given you a powerful advantage that, when leveraged correctly, can save you thousands of dollars over your next term.

Don’t let your bank’s passive renewal letter be the end of the conversation. Make it the beginning of a smart move to a lender that better fits you.

Let’s Get Your Best Rate.

Ready to put your insured advantage to work and secure the lowest available rate for your next term? Let’s connect today!