If your mortgage is coming up for renewal, you may be wondering how early you can start the process. You may also be wondering whether it makes sense to renew early, wait until your current term ends, or compare options with other lenders.
At Charlene Elliott Mortgages, we recommend starting the renewal conversation 3 to 6 months before your mortgage maturity date. This gives you enough time to review your current mortgage, compare your options and make an informed decision before you’re required to renew.
Most importantly, your mortgage renewal is an opportunity to make sure your mortgage still works for your financial situation—not simply a formality where you sign whatever your current lender sends you.
Can You Renew Your Mortgage Early?
In many cases, yes. However, the exact timing depends on your lender and the terms of your current mortgage.
Some lenders allow borrowers to renew several months before their mortgage maturity date. Your lender may even contact you with an early renewal offer that includes a new interest rate and mortgage term.
While this can be convenient, we recommend looking at the offer carefully before signing.
An early renewal may be worth considering, but it isn’t automatically the best option. Before making a decision, it’s important to consider:
- The interest rate you’re being offered
- The length of the new mortgage term
- Any fees or penalties that may apply
- Your current financial situation
- Whether you want to change your mortgage type
- Whether another lender may offer better terms
- Whether refinancing makes more sense
How Far in Advance Should You Start Your Mortgage Renewal?
We recommend starting the process approximately 3 to 6 months before your mortgage maturity date.
This gives you time to understand what’s available without having to make a last-minute decision.
Starting early allows you to review your current mortgage and determine whether you should:
- Renew with your existing lender
- Negotiate a better renewal offer
- Switch to another lender
- Change your mortgage term
- Change from a fixed to variable mortgage, or vice versa
- Increase your mortgage payments
- Refinance your mortgage
You don’t necessarily need to make a decision immediately. The benefit of starting early is having enough time to properly explore your options.
Should You Accept Your Bank’s Mortgage Renewal Offer?
Not necessarily.
One of the biggest mistakes homeowners can make is assuming their existing lender’s renewal offer is automatically their best option.
Your bank may offer you a renewal rate that looks competitive compared with the rate you’re currently paying. However, there may be other lenders offering different rates, terms or mortgage features that could better suit your needs.
That’s where working with a mortgage broker can be helpful.
At Charlene Elliott Mortgages, we can review your renewal offer and compare it with other available mortgage options. If your current lender is offering the best solution, we’ll let you know. If another option makes more sense, we’ll help you understand what switching would involve.
The important thing is to compare before you commit.
Is It Better to Renew Early or Wait?
There isn’t one answer that applies to everyone.
An early renewal could make sense if you’re comfortable with the rate and terms being offered and want to lock in a new mortgage before your current term ends.
On the other hand, you may decide that waiting until closer to your maturity date gives you more flexibility to compare options.
The right decision depends on your mortgage, your financial situation and what you’re hoping to accomplish with your next mortgage term.
If you’re considering changing your mortgage before the end of your current term, it’s also important to understand whether there could be penalties or other costs involved.
That’s why we recommend reviewing the numbers before deciding to renew early.
What If Your Financial Situation Has Changed?
Your financial circumstances may be very different from when you originally got your mortgage.
Perhaps your income has changed. Maybe you’ve paid down a significant amount of your mortgage or built up equity in your home. You may have taken on additional debt, started planning renovations or have other financial goals.
If your situation has changed, simply renewing your existing mortgage may not be the best solution.
Your renewal could be an opportunity to look at refinancing or restructuring your mortgage.
For example, refinancing may allow you to access home equity or consolidate higher-interest debt, depending on your circumstances.
A mortgage broker can help you determine whether refinancing should be considered alongside a traditional renewal.
Can You Switch Lenders When Your Mortgage Renews?
Yes. You aren’t required to stay with your existing lender when your mortgage term ends.
Switching lenders can give you the opportunity to compare different mortgage rates, terms and features.
However, switching isn’t always the best choice either. There can be costs and other considerations involved, so it’s important to compare the overall mortgage rather than focusing only on the interest rate.
At Charlene Elliott Mortgages, we can help you compare your current lender’s offer with other available options and determine whether switching makes financial sense.
What Happens If You Wait Until Your Renewal Date?
You can wait until your mortgage is close to maturity, but we don’t recommend leaving everything until the last minute.
Giving yourself several months allows you to properly review your options and deal with any questions or changes that may come up during the process.
It also means you aren’t making a major financial decision simply because you’re running out of time.
Your lender will provide information about your renewal, but you don’t have to wait for that letter before you start exploring your options.
When Should You Contact Charlene Elliott Mortgages?
If your mortgage is coming up for renewal, 3 to 6 months before your maturity date is a good time to get started.
We can review your current mortgage, discuss what’s changed since you originally arranged it and compare your available options.
Depending on your situation, the best option may be to:
- Stay with your current lender
- Negotiate your existing renewal
- Switch lenders
- Change your mortgage term
- Change your mortgage type
- Refinance
There is no one-size-fits-all answer to a mortgage renewal. That’s why we take the time to understand your situation before recommending a direction.
Don’t Automatically Sign Your Renewal
A mortgage renewal is an opportunity to review one of the largest financial commitments you’ll have.
You don’t have to automatically accept the first renewal offer you receive. Taking the time to compare your options can help you understand whether your current lender is still the right fit and whether there are better mortgage solutions available.
At Charlene Elliott Mortgages, we can help you navigate the renewal process, compare lenders and determine what makes the most sense for your financial goals.
Want to learn more? Contact us at 780.792.0009 or charlene@charleneelliot.ca
