Mortgage Intelligence

Oshawa's Mortgage News Desk!

How early should you renew your mortgage?

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Is your mortgage coming up for renewal in the next few months? If so, you may want to get a head start on the renewal process. In addition, you may have already heard from your current lender on your renewal, as lenders are known to contact homeowners 4-6 months ahead of renewal due dates.

This will be the time for you to:

  • Review the renewal notice from your current lender to make sure that you are getting the best possible rate and terms for renewal, before you sign.
  • Negotiate better terms and the best possible rate with your current lender.
  • Find out the possibility of breaking your mortgage with no penalties or by paying the minimum amount in penalties, if you are looking to move to a new lender.
  • Find out if renewing or refinancing your mortgage, works best for you.
  • Shop around with help of your mortgage broker, for alternate options that are available with new lenders.

Although you cannot renew your mortgage ahead of time if you plan on changing your lender, you can however negotiate better terms and less aggressive penalties with a new lender, and also have the lender hold a rate (up to 120 days) ahead of your renewal.

Homeowners in the past few years have had success in securing comparable or even lower rates, for their renewals. As this trend is not expected to last forever, it is crucial that you start your renewal process ahead of time. An early start to the renewal process will protect you from having to make additional payments, in the event of future increases in interest rates.

An article published by The Globe and Mail highlights the benefits of early renewals and the results of a survey carried out by CMHC on mortgage renewals.

Thinking about renewing or refinancing your mortgage? This will depend on what you are looking to get out of your mortgage. Contact the MiMortgage team today at 1 866 452-1100 to discuss options that are most suitable for you.


David Hetti is a full time Mortgage Broker with Mortgage Intelligence (FSCO Lic MO8002434) David is the Director of Operations at Mortgage Intelligence Oshawa and heads a team of full time licensed Mortgage Agents serving all of Ontario. David is also a licensed Insurance Consultant.

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