Mortgage Renewal Tips

4 Tips for Renewing Your Home Mortgage - Interior Savings Local Matters


If you’re new to the subject of mortgage renewal, the following advice and guidance should help 

you to navigate the process successfully. Don’t forget that a mortgage broker can also help guide 

you through the process, and if you need to renew your mortgage, be sure to schedule a 

consultation with a reputable broker at the earliest.


What is the process of mortgage renewal?


When your mortgage term ends, if you still owe a balance, then you’ll need to renew it for 

another term. This gives you the chance to assess your current mortgage and compare it to any 

new financial goals that you might now have.


Your current mortgage provider should send you a renewal slip, and you can simply sign it and 

send it back, but there are some steps that you could benefit from taking, before your current 

mortgage needs to be renewed:



  • If looking for a new mortgage provider, begin your search 4 months in advance:



Most lenders will allow you to start the mortgage renewal process 4 months before it expires, enabling you to avoid paying a prepayment penalty, and if you’re not quite ready to schedule a consultation with a mortgage broker this soon, you can still check out your options online; you’ll then be able to make a more informed choice when the time comes. 


  • Do you have any new financial goals?


A lot of things may have changed for you financially over the course of your current mortgage term, and it may no longer match your goals or needs. Consider your current financial circumstances before making any decisions, and consult with a broker if you need any clarification. 



  • What are you now looking for from a mortgage?



While your financial goals may have changed, so might your expectations from a mortgage; ask yourself the following questions before beginning your mortgage search:



  • Do you have enough leverage in your monthly budget for increased mortgage payments?
  • Might you receive any bonuses or inheritances that could contribute towards your mortgage?
  • Will you be able to pay off your mortgage entirely in the new term?
  • Will you need to borrow more money from your lender during this next term?
  • In the next 5 years, are you likely to sell home or move home?




  • Get ready in the last 30 days to renew



At least 21 days before your mortgage term is about to expire, your current lender should, by law, send you a mortgage renewal statement, however, this is usually their lowest posted rate that is valid for the 30 days before maturity. If you extend that offer by 30 days, you’ll protect yourself from potential mortgage rate hikes in that period, so you should also meet with your broker during that period and talk about other lenders and what they might be able to offer you.  



  • Make your final decision



Once you’ve followed the above steps, and have sat down with your mortgage broker to discuss all your options at length, then it’s time to make your final decision. 


If you seek professional advice throughout the mortgage renewal process, you should be 

able to get yourself the best deal, while making the whole process less stressful, too. 

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