In Canada, most mortgages have a fixed term, typically ranging from 1 to 10 years. At the end of the term, the mortgage will come up for renewal. This means that the borrower will need to either pay off the remaining balance of the mortgage, refinance the mortgage to a new loan, or renew the mortgage with the same lender. Here are a few reasons why it may be beneficial to renew your mortgage terms:

1. To secure a lower interest rate: If interest rates have fallen since you took out your mortgage, renewing your mortgage may allow you to secure a lower interest rate and potentially save money on interest over the life of the loan. 


2. To change the terms of your mortgage: If you are unhappy with the terms of your current mortgage, such as the type of loan or the length of the term, renewing your mortgage may allow you to change these terms and potentially secure a better deal. 


3. To access additional cash: If you have built up a significant amount of equity in your home, you may be able to access some of this equity through a cash-out refinance when you renew your mortgage. This can provide you with additional cash that can be used to pay off debts, make home improvements, or for other expenses. 


4. To avoid a penalty: Some mortgages have a penalty for paying off the loan early or refinancing before the end of the term. Renewing your mortgage with the same lender may allow you to avoid this penalty.

Generally, it is a good idea to start shopping for a new mortgage between two and four months before your current mortgage term expires. Many lenders send out your mortgage renewal letter very close to the time that your term expires and this does not give you ample time to arrange for a mortgage term through a different lender. This means that you need to be tracking your own mortgage term timeframe and know when it is time to start shopping for a good mortgage renewal rate.

Your mortgage is one of your biggest expenses. As such, it is imperative that we find you the best interest rate and mortgage terms that we possibly can. By shopping around your mortgage renewal date, The Mortgage Professionals can help you find the best solution that is tailored to your specific situation and needs.  Don’t be one of the 60% who just simply sign their renewal letter and send it back. Use our services to negotiate the best mortgage product at the best rate available. Unlike banks, we work for you. We always strive to offer you the best product at the lowest rate possible.