Everything You Need to Know About Mortgage Renewal in Canada

Are you a homeowner in Canada and ready to renew your mortgage? Mortgage renewal is an important process that should be taken seriously, as it can have a major impact on your finances. To help you make the best decision possible, here is everything you need to know about mortgage renewal in Canada.

What Is Mortgage Renewal?

Mortgage renewal is the process of transferring ownership of your current mortgage from one lender to another. During this process, you may be offered a better interest rate or different terms than the ones you currently have. It’s important to note that if you don’t shop around for better terms or rates, your current lender will automatically renew your mortgage with their existing terms and conditions—which may not be the best option for you.

When Should I Start Looking for a New Lender?

The best time to start looking for a new lender is between three and six months before your current mortgage expires. This gives you plenty of time to shop around so that you can compare rates and find the best deal available. This also gives potential lenders enough time to consider your application, so that when it comes time for renewal, there won’t be any delays or surprises.

What Are My Options When Renewing My Mortgage?

You have two options when renewing your mortgage: staying with your current lender or switching lenders. Staying with your current lender could mean paying higher interest rates but it could also mean less paperwork and hassle since they are already familiar with your situation; switching lenders could mean more paperwork but potentially lower interest rates and more favourable terms and conditions. Ultimately, it will depend on what’s best for you and what works within your budget.

No matter which option you choose—staying with your current lender or switching lenders—it’s important to do some research first before making any decisions regarding mortgage renewal in Canada. Take some time to compare different lenders’ offers so that when the time comes to renew, you’ll know exactly what kind of deal will work best for you financially over the long term. Good luck!