When your mortgage is first established it is set up with an amount of years it will take for you to completely pay off your loan. This is called the “Amortization Period”.  Within the Amortization period there is a “Term” which is the amount of years that a Lender will guarantee you the agreed upon interest rate.  During the years within the term, you are obligated to fulfill the commitment initially agreed to.  Once the term is coming to an end, as the mortgagor, you have the right to renegotiate a new interest rate and possibly change mortgage details for the next term without any penalty.  This is called the Renewal Process.

• The first step is knowing when your mortgage is up for renewal.  You do not want to leave the renewal process too close to the term’s maturity date.  Many recommend beginning the process with a mortgage broker 120 days prior to the end of your term.  Your Lender will send you a renewal statement 21-30 days prior to your renewal date with the hopes that you will continue your mortgage with them and let it renew automatically for the next term.
• The next step would be working with a Mortgage Broker to see what other options as far as interest rates and terms are available to you moving forward. 
• It is beneficial to list any changes to finances, debt, and overall lifestyle changes.  You will need to determine if you want to increase your payments or if you need your payments to be less than they currently are.  This will help determine what type of payment would work best for the next term that will be agreed upon.
• Your Mortgage Broker then uses their expertise to submit applications to Lenders that work with your specific needs and requests.  This takes the renewal process stress away from you and can truly be a simple process that may save you time and money on your overall mortgage loan.

Mortgage renewals are great opportunities to make any adjustments to your mortgage according to what is happening in your current life.  Essentially, the more money you choose to pay towards your mortgage the faster you will pay off your entire mortgage loan.  If planning to move to a new home, renewal time works well because it gives you the ability to secure a mortgage for your new home without having to worry about a payout penalty.

Mortgage Brokers are always a wise choice when you are needing to assess your options.  Rather than you taking on the stress of “shopping around” for a better interest rate a Mortgage Broker is unbiased and capable of answering all of your questions and explaining different scenarios to you with regards to your mortgage.  They work for you by having access to numerous lenders, which gives them the ability to help you achieve the greatest options when it comes to your mortgage loan.