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Mortgage Renewal

Mortgage renewal is an opportunity at the end of a mortgage term to negotiate the conditions of your contract, such as the interest rate, payment schedule and more.

Assuming you still owe money on your mortgage, you’ll be facing a mortgage renewal when your current term expires.

Renewing a mortgage is an opportunity to make some important decisions about the next phase of your home loan, including payment frequency, which lender you want to borrow from and whether to go with a fixed or variable rate of interest for the duration of your new term.

Preparing for a mortgage renewal ahead of time can help you secure a more affordable mortgage for the next several years. We can help you get the lowest interest rates!

What is a mortgage renewal?

In Canada, a mortgage’s amortization period, or the time required to repay a home loan completely, is typically made up of multiple terms. Those terms dictate how long a mortgage contract stays in place. A mortgage with a 25-year amortization, for example, might be made up of five five-year terms. You need to sign a new mortgage contract at the end of each term until your mortgage is fully paid off. A mortgage renewal is when you work with a lender to structure that new contract.

If you took out a five-year fixed-rate mortgage in November 2018, for example, your term will expire in November 2023. You’ll need to renew if you aren’t in a position to repay your remaining mortgage balance at that point.

When to renew

Renewing your mortgage is a great opportunity to tailor your mortgage to fit your changing life. Here are some helpful tips to make the most of your renewal.

Get an early start

It’s a good idea to start the renewal process early. You’ll want to take a look at the various offerings from your lender, and re-evaluate your current financial position and goals to determine the kind of mortgage loan is right for your lifestyle.

120 days from maturity

It’s a good idea to write your mortgage renewal date on a calendar, then count back 120 days (4 months) and start your renewal process then. Lenders may let you renew your mortgage loan 120 days before maturity early without you having to pay a prepayment charge. If you’re not ready to sit down with your lender on this day, you can at least start researching your options.

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Get free advice from us! We'll quickly go over your renewal details to help you make a simpler decision.

If you choose to switch to a new lender or make any changes, there might be some things you need to take care of such as paperwork or an appraisal. You should also be aware of fees for paying off your loan early that you were not informed of before. No need to worry, we understand how this works and we are here to make the process easy and clear for you.

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Renewals & transfers

You don’t have to automatically renew with your bank. In fact, our friendly, expert mortgage brokers can check with your bank and other lenders to get you a better rate. And maybe even a better mortgage fit.

At Canadawide Mortgages, we are committed to helping you find the best mortgage. We make the process simple by checking with different lenders, including your own bank, to ensure we are competitive. Since we specialize in mortgages, we offer you the best rate you qualify for. Plus, we are able to give you a discount based on the amount of work we do. Trust us to find the right mortgage for you!

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FAQs

Questions
you may have!

When your current term ends you’ll either have to renew your current mortgage or pay off the remainder of your mortgage. We’ll send you a mortgage renewal notice before your current term ends, just pick up the phone and give us a call to renew.

Increase Your Mortgage Payments:
Depending on your mortgage, you can increase your mortgage payment once each calendar year by up to: 10% of the current mortgage payment amount for a Fixed Mortgage or 20% of the current mortgage payment amount for any other kind of closed mortgage.

Make a Lump Sum Payment:
You can make lump-sum prepayments each year without a prepayment charge (minimum of $100), up to a maximum of: 10% of the original mortgage amount for a Fixed Mortgage or 20% of the original mortgage amount for any other kind of closed mortgage.

There are many reasons why your mortgage payment might change at renewal. If mortgage rates have shifted since the beginning of your last mortgage term, your mortgage payment is likely to change based on the new rate your lender offers you. Your payment also might change if you adjust your amortization period, payment amount or payment frequency.

If you will be done paying your mortgage in a year or two and you see prices of homes going up or down, you may not want to wait to change your mortgage plan. This means you may have to end your current mortgage plan early, which might come with fees or penalties. But it might still be worth it, especially if prices are changing quickly. We can help you figure out if it makes sense for you to break your mortgage plan early to potentially save money.

Certain lenders will automatically renew your mortgage, possibly for a short term at a higher interest rate. If your mortgage doesn’t automatically renew, and you take no steps to renew it before the renewal date, the remainder of your mortgage will be due in full.