Mortgage Renewal
When the mortgage term has concluded, your mortgage is up for renewal unless you repay the remaining balance in full. If your mortgage contract is with a federally regulated financial institution, such as a bank, the lender must provide you with a renewal statement at least 21 days before the Maturity Date. Your lender must also notify you 21 days before the Maturity Date if they have decided that they will not renew your mortgage. Unregulated lenders tend to follow the same practice.
There are pros and cons to renewing with your existing Lender but Borrowers should be prepared to look around for alternatives for their renewal mortgage in order to negotiate the best rate. Be sure to compare the renewal offer from your existing Lender to what is available in the market. One advantage of renewing with your existing Lender is a simplified Underwriting process. If you renew with a new Lender, that Lender will need to conduct a full Underwriting to approve you as a new Mortgage customer.
About The Author
Don Scott
Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.
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