A Step-by-Step Guide to Renewing Your Mortgage

ByLuke Wile

Posted in Mortgage News:

When it comes time to renew your mortgage, it presents a great opportunity to reassess your financial situation and determine whether your needs have changed since your last mortgage term began. Perhaps your budget has shifted, you’re thinking about moving, or you’re no longer happy with your
current lender.

Factors like these can have a big impact on your renewal decision and help you create a fresh set of criteria for your new mortgage term.

If your mortgage renewal is coming up, here’s a simple guide to help you make the best decision for your unique situation:

Consider Whether Your Monthly Budget Has Increased

Paying off your mortgage sooner and saving money on interest might be possible if you choose to increase your monthly payments or change their frequency, but you must consider any terms of renewal carefully before agreeing to them.

Think About Exploring Different Interest Rates

There may be better rates available when it’s time to renew. A local mortgage broker can help you compare your options and possibly find a lower rate than what your current lender is offering.

Ask Yourself: Can You Make a Lump Sum Payment?

Depending on your lender, you may have the option to make a lump sum payment toward your mortgage during the renewal process.

Find Out If Extra Payments Are a Possibility During Your New Term

Paying off your mortgage faster with extra payments may be an option, but check whether this will incur any penalties before agreeing to anything.

Do You Plan to Move During Your New Term?

If so, you may be able to transfer your mortgage with a portable or assumable mortgage.

Could You Pay Off Your Mortgage Early?

If there’s a chance, you’ll be able to pay off your mortgage within the upcoming term, it’s important to find out whether your lender charges prepayment penalties. Paying off your mortgage early could save you thousands, but only if there are no large fees attached.

Start Preparing at Least 4 Months Before Renewal

Most lenders allow you to renew your mortgage between 90 and 120 days before your term ends— without penalty. If you’re not ready 4 months in advance, use the time to review your current goals and meet with a mortgage broker to explore better offers from other lenders.

Lock in Your Rate 30 Days Before Renewal

About 21 days before your mortgage term ends, your lender will send a renewal statement. Around 30 days prior to maturity, your lender may offer you their best posted rate. At this stage, you can:

  • Lock in your new rate with your current lender
  • Use their offer to compare against other lenders
  • Complete paperwork to switch lenders, if you’ve found a better deal

Tip: The best time to switch lenders is during renewal. Breaking your mortgage mid-term to switch will almost always result in a prepayment penalty.

Renewing your mortgage isn’t just a formality—it’s a key opportunity to improve your rate, update your payment structure, or switch to a better lender. Taking the time to review your financial situation before you sign can result in long-term savings and greater flexibility.

To fully understand your options—and to access mortgage deals that may not be available directly—it’s smart to speak with a local mortgage broker.

Call Red Key Mortgage Group at 403-460-7707 or Contact Us online to review your mortgage renewal options with an expert.