When Should Your Mortgage Be Renewed?

Planning beforehand is the key to getting the most out of your mortgage renewal. Consider renewing your contract a few weeks before your term finishes. Some financial companies may even let you extend your mortgage six months before it expires.

Your chances of getting the best mortgage interest rate are substantially better if you contact your mortgage broker four months (120 days) before the end of your term. 

Indeed, this expert can “reserve” the current mortgage rate so that it is available when you renew your mortgage, but that does not promise you will take it, especially if the rate continues to fall. As a result of the mortgage broker’s intervention, you will get the best rate available at the time of renewal.

Your lender must send you a notice of renewal at least 21 days before the end of your term. The following information must be included in this notice:

  1. The remaining balance must be repaid on the renewal date
  2. The current rate of interest
  3. The term’s duration
  4. The frequency with which payments are made
  5. All expenses associated with the renewal


If you elect to renew your mortgage before the time limit set by your financial institution, you may be charged a penalty. You must ensure that your early renewal is worthwhile and that the savings will outweigh the expenses. The higher the penalty fees, the longer your mortgage will be in effect.


Examine your needs before renewing your mortgage


Take the time to reevaluate your financial needs and aspirations before renewing your mortgage. Your long-term objectives may have shifted since your last meeting with your financial institution.

Here are some questions you may ask yourself to see if your mortgage conditions are still appropriate for you or if you need to make adjustments to your contract:


  1. What is the state of your finances? 
  2. Has it gotten better or worse in recent years?
  3. Is the frequency of your payments satisfactory to you? 
  4. What if you could pay off your loan sooner? 
  5. Is it within your budget?
  6. Do you require additional finances and may need to refinance? 
  7. Perform you intend to do any substantial improvements in the near future, for example? 
  8. Do you want to purchase a second home?
  9. Do you intend to relocate or sell your home soon?
  10. Are you pleased with your current lender’s services? 
  11. Is it time to switch financial institutions? 
  12. What are the potential ramifications of a transfer?


The goal of this questioning is to see if the financial plan you used when choosing your mortgage or renewing it before is still appropriate. It may be more suitable to reinterpret the terms of your contract, depending on the changes that have occurred or the plans you have in mind.

A few little modifications to your contract might have a significant impact. Have you recently become a parent and must now allocate a portion of your money to your new family member? Reducing your monthly payments could mean the difference between having a good financial state and having a precarious financial situation. Have you received a raise at work? In the long term, increasing your payment frequency could save you a lot of money on interest.

So, do not be afraid to bargain with your financial institution or your mortgage broker about the terms of your renewal. Your mortgage could automatically renew for another term without your action, which would be detrimental to you. 

If refinancing lowers your mortgage payment, shortens the duration of your loan, or helps you develop equity faster, it can be a smart financial decision. It can also be a useful tool for getting debt under control when utilized correctly. Examine your financial condition carefully before refinancing.


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