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Mortgage Renewals in Ontario

Mortgage renewals play a pivotal role in the homeownership journey, representing a crucial juncture for individuals in to recalibrate their financial strategy. As the initial term of a mortgage concludes, the renewal process becomes a strategic window for borrowers to reassess their financial needs and goals. In essence, mortgage renewal time is not merely a procedural step but an invaluable opportunity for borrowers to tailor their mortgage arrangements to align seamlessly with their current financial situation and aspirations.

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Lenders will usually contact you approximately 6 months prior to the current mortgage agreements end date. This is an excellent time to reassess your financial needs and goals and to renegotiate the terms and conditions of your mortgage to better fit your current situation.  Mortgage renewal time is an opportunity to look at interest rates, the length of the new term of the new mortgage and where you which lender to place your mortgage with if you chose to move it. It is always important to contact a mortgage agent to guide you along this mortgage renewal process. 

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FAQ for Mortgage Renewals

To help you along your journey of renewing your mortgage, here are some frequently asked questions from our mortgage renewals clients:

When should I start thinking about renewing my mortgage?

It is recommended to start thinking about renewing your mortgage approximately four to six months before your current mortgage term expires. This allows you enough time to explore different options, compare rates, and negotiate with your lender.

Can I switch lenders when renewing my mortgage?

Yes, you can switch lenders when renewing your mortgage. Renewal time is an excellent opportunity to explore other mortgage options available in the market. Contact a mortgage agent to help you explore different lender options when your mortgage is up for renewal. 

When getting my mortgage renewed, do I need to go through the mortgage approval process again?

Whether you have to go through the approval process again depends various factors, including what you are looking to change about the mortgage. If you are renewing your mortgage with the same lender, you do not typically go through the full mortgage approval process again.  If looking at other lenders, options, or changing the terms of the mortgage, you will need to go through the approval process again and qualify. .

What factors should I consider when renewing my mortgage?

​There are 4 main factors you should consider when going through the mortgage renewal process:

  • Interest rates: Compare the rates offered by different lenders 

  • Mortgage term: Decide if a shorter- or longer-term works based on your financial goals.

  • Prepayment options: Check if the new mortgage agreement allows for prepayments without penalties.  This is an often overlooked but important aspect to consider.

  • Fees and charges: Be aware of any fees or charges associated with the renewal process.

Can I negotiate the terms of my mortgage renewal?

Absolutely, you can negotiate the terms of your mortgage renewal. This includes negotiating the interest rate, the length of the term, and any other terms and conditions. It's a good idea to research the current mortgage market and be prepared to negotiate with your lender to get the best possible terms.

What happens if I do not renew my mortgage?

If you do not renew your mortgage AND do not pay off the remaining balance, it will be considered a default. This can lead to foreclosure proceedings by the lender, which may result in the sale of your property to recover the outstanding balance. In short, you need to renew your mortgage if you are not prepared to full the remainder of the mortgage amount. 

Should I seek professional advice when renewing my mortgage?

Seeking professional advice is highly recommended when renewing your mortgage, especially with the economic climate in Ontario. Mortgage brokers and financial advisors can provide valuable insights, help you navigate the renewal process, and assist in finding the best mortgage options based on your individual financial situation and goals.

How to start the mortgage renewal process in Ontario?

To start the mortgage renewal process in Ontario, you can reach out to your current lender and express your intention to renew. Alternatively, you can shop around and compare offers from different lenders to ensure you're getting the best deal. Consider consulting with a mortgage broker like Tamara who can help you navigate the process and present you with all your options.

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