March 16, 2016 nkad3

How Does the Mortgage Renewal Process Work?

The mortgage renewal process is usually the easiest and least stressful type of mortgage experience that home owners will encounter. The mortgage renewal process is typically initiated by the lender who holds their current mortgage. Unless the home owner has been proactively inquiring about the upcoming renewal for their mortgage, a customer service representative from the bank/institution would initiate first contact. This can be in the form of a courtesy phone call or the actual mortgage renewal offer sent in the mail. If you had arranged your mortgage through a mortgage broker, they will also usually reach out to you to offer assistance. If the homeowners have been diligent with their mortgage payments and have maintained a good creditworthiness overall, it is highly likely that the lender would offer to renew the existing mortgage. It is worth noting that although this is the normal practice in the industry, borrowers should never assume that they would be offered a renewal. If you have not heard anything from the bank at least 3-4weeks before your maturity date, we would advise that you call and speak with the lender to confirm.

The rest of the mortgage renewal process is as follows:
1. Read over the terms and conditions of the renewal offer
2. Select the term and rate that is being offered
3. Sign and submit the completed offer back to the bank to finalize your acceptance

One thing you don’t usually see as part of the mortgage renewal process is a lawyer. This is due to the fact that the renewal offer is like an amendment to your original mortgage commitment, with the adjusted terms and conditions that you have selected. Since the existing registration of your mortgage is still valid, the renewal offer will function to amend the terms and conditions of the existing mortgage.

Although, the mortgage renewal process is very straight forward, we would still recommend that you contact a mortgage broker to ensure that the renewal offer is competitive to the current market. As mortgage brokers, we would also like to ensure that the terms and conditions compliment your short/long term goals moving forward. If you would like to discuss your mortgage renewal or have any questions about the mortgage renewal process, please feel free to contact us at 905.455.5005 or at broker(at)cmsmortgages(dot)ca

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