A renewal normally occurs once your mortgage term ends and you have not fully paid off the mortgage loan. Sometimes a borrower would renew early in favour of lower rates. Renewing with your current lender means accepting new terms on the same borrowed money. Renewing with a new lender means paying off the existing balance with a new mortgage and no increase in the amount borrowed or the remaining amortization.
A refinance typically occurs when you extend your mortgage balance. You could use this extended balance to complete a debt consolidation or take out equity. The additional balance could be added to your mortgage as a HELOC, another mortgage or buy a larger mortgage. A refinance could also occur if you extend your mortgage’s remaining amortization (life) or add/remove someone from your property’s title. Refinance rates are often slightly higher than renewal rates.