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Start Your New Mortgage Term Off The Right Way

Tips For Renewing Your Mortgage

When your mortgage term ends, you have a few options in front of you. What you do may affect how much you are required to give per payment, among other conditions.

At the end of your mortgage term, it can feel tempting to sign the renewal document without giving it much thought to avoid the hassle of switching lenders or refinancing.

However, it’s important to really think your decision through and take into consideration your current and future financial goals. In this article, we’ll offer tips for homeowners like you, who are considering a mortgage renewal but want to make sure they’re aware of all their options.

What Happens At The End of Your Mortgage Term

A long-term mortgage plan usually consists of multiple ‘terms.’ Each mortgage plan has a period set for how long a term should be – these are usually between six months and ten years, though most terms are set for five years.

When your term comes to an end, it’s likely that you’ll transition into your next term – though there are a few ways to do this, and they produce different results.

In most cases, your lender will give you a notice to indicate that your term is ending. They usually send you this by mail up to 6 months prior to your renewal date. If your lender is willing to renew your mortgage for another term, they will give you a renewal offer – this will indicate your existing balance, new term length options, interest rate options, and notice of any additional charges due.

You may accept or reject the renewal offer. Instead of accepting it, you could negotiate for a better interest rate, seek a new lender, or simply pay off the rest of your balance – though the latter option is only possible in extremely rare circumstances. It’s also always a smart idea to consult with a mortgage broker before you make any decisions.

Learn more about your options below.

Renew Your Mortgage

You can renew your mortgage by accepting your lender’s renewal offer. Before you do, you may consider speaking with your lender or mortgage broker to learn more about your agreement or even try negotiating for a better deal. Tell your lender about other deals you’ve been offered, with proof, and you may see that your lender will offer a better deal.

Mortgage Refinancing

Mortgage refinancing allows you to replace your existing mortgage agreement with a new agreement – this means you’ll have new a new interest rate, term length, and more.

You may want to consider refinancing, if you want to change your terms, or if you want to consolidate your debt.


Can Your Existing Lender Decide Not To Renew Your Mortgage?

Yes – your mortgage lender may decide to deny your renewal. This rarely happens, though – it only happens following specific circumstances. If you’ve made all of your payments throughout your prior mortgage term, and your financial situation hasn’t changed in a way that will make it hard for you to repay your mortgage, it’s pretty likely that you’ll be in good standing to have your mortgage renewed.

Tips For Getting The Best Deal When You Renew Your Mortgage

Don’t Immediately Renew!

Many homeowners find the mortgage process confusing and frustrating – and if you’re one of them, we certainly don’t blame you. It might seem easier to simply accept whatever offer your lender presents you with, but we challenge you to take some time and consider your options. You may find something that serves you better and saves you money.

Consider Your Current and Future Financial Goals

The end of your mortgage term provides the perfect opportunity to review your financial needs. This will allow you to make the best decision, whether it’s going with a mortgage renewal or taking a different route. Consider these questions:

  • Are you able to make larger mortgage payments? Or, do you need assistance making payments?
  • Do you want to change your payment frequency?
  • Does your lender’s approach to service satisfy you, or do you think you could find a better fit elsewhere?
  • Do you want to consolidate other debt?

Shop Around

Learn about what else is out there. You might find that the industry has changed and you could find a better deal with another lender. On the contrary, you might find that mortgage rates are high and you’re better off sticking with what you have.

Don’t Be Afraid To Ask For a Better Rate

Many homeowners are successful in negotiating for a better deal with their lender. You might qualify for a lower rate than what they initially offer – but you won’t know until you ask!

Work With a Mortgage Broker

A mortgage broker can offer helpful advice to point you in the right direction – and do so much more. These professionals act as a third-party voice between you (the borrower) and the lender.

A mortgage broker can help work with your lender to come up with an agreement – say, if you want a lower interest rate, or another change to your mortgage.


Mortgages can be stressful. However, we suggest taking the time to consider what’s right for you as you end one mortgage term and begin another. You might be able to score a great deal.

Talk to a mortgage broker today to learn how you can secure a great mortgage deal on your next term!

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