10 FREQUENTLY ASKED QUESTIONS ABOUT MORTGAGE RENEWALS
If you do not renew or have plans to renew, you must look to either switch to a new lender or sell the property. Depending on the lender and the relationship with the lender during the term will impact how quickly they issue a demand notice and start foreclosure action.
This is common question, but it is the same as the 1 st question. An expired mortgages means that your existing lender will not renew.
This depends on the provisions of the original mortgage you signed, your payment history and other required conditions of the mortgage. Lenders have clauses that protect their investment should a borrower have poor repayment history, or having keeping the conditions of the mortgage such as keeping property taxes, condo fees, or property insurance in good standing.
It is possible, but not a guarantee. If you have paid well with your lender and they have been happy with you as a borrower, they may simply have you sign a renewal offer and continue with your next term. Should the lender request, and you are unemployed an exception can also be granted; however the moment that you have confirmation that the lender will not renew for this reason, you would want to act quickly to find new financing. Most traditional lender will not consider an unemployed applicant without a very high net worth so you may have to secure a private mortgage for the short term to bridge you until you return to work.
Yes. The Lender reserves the right to renew, even if you’ve been a perfect borrower. At times if a Financial Institution is in the midst of restructuring, they may not renew specific type of mortgages that do not meet their new portfolio requirements. The same can be said for a Private Lender.
Yes. This is common and generally to take advantage rate discounts or offers offered by the Competition. Conventional Lenders can take over your mortgage and continue on the same amortization as your original agreement. You will need to meet the new lender’s requirement to accomplish the switch. Private If a switch is not possible, stick with you existing lender. If your existing lender isn’t renewing, you may need to consider alternative short term refinancing.
Yes, if the Your Lender authorizes. Many Conventional Lenders will send out renewal offers 4 to 6 months before the maturity date. In order to keep customers, most Lenders will waive the prepayment costs associated with renewing early. Some Private Lenders will also do this on a case by case basis.
Yes. Many Lenders will also offer an open mortgage option prior to renewal so that if you need to pay out shortly after, you can do so. Check the fine print.
This depends on the Lender. Most early renewals tend to happen 4 to 6 months before the maturity date.
Provided that you have been a good borrower; the Lender will provide you with 1 or various renewal options. They will generally offer an open, closed, fixed, or variable mortgage for you to decide on what is best suited. Renewal Offer terms from a Conventional Bank will generally range between 6 months to 10 year terms.