Mortgage Renewal
Definition
A renewal is signing a new mortgage term with your existing lender when the current term matures, without changing the loan amount or the property.
How it works
Lenders usually mail a renewal offer several months before maturity. Signing it is easy, and that convenience is exactly the problem: the first offer is frequently higher than what the same lender will approve if you negotiate, and higher than competing lenders will offer.
You are not obligated to stay. Switching your mortgage to another lender at maturity is a transfer rather than a refinance, so there is no penalty, and many lenders cover the legal and appraisal costs of taking the business.
Renewal is also the natural moment to change structure — a different term, a switch between fixed and variable, or a payment increase — because none of those changes cost a penalty when the term is already ending.
Quick facts
- Start comparing 4–6 months before maturity.
- Switching lenders at maturity carries no prepayment penalty.
- The first renewal offer is usually negotiable.
Put this into practice
Still have questions about mortgage renewal?
Call for a free, no-obligation conversation about your situation.
(604) 780-5173