The penalty depends on your mortgage type. Variable rate mortgages and fixed-rate mortgages have different penalty rates. Before breaking any mortgage early, it’s worth getting an exact penalty quote from your current lender.
A renewal happens when your existing mortgage term ends and you sign a new term — either with your current lender or a new one — for the same outstanding balance and remaining amortization. A refinance happens when you increase your mortgage balance before your term ends — commonly to consolidate higher-interest debt, access home equity for renovations or investments, or change your mortgage structure.
You can start shopping for your mortgage renewal as early as 120 days (about four months) before your maturity date — even before your current lender sends you a renewal offer.