Mortgage renewal
Mortgage renewal
Renew and get the best mortgage for you
Is your renewal date coming up? Take this opportunity to personalize your mortgage.
What is a mortgage renewal?
When your term ends and you haven’t yet fully paid off your mortgage, you need to renew it. This is a great time to review your current financial situation and adjust your mortgage so that it fits where you are now, and where you want to be in the future.
You can start the renewal process 5 months before your mortgage terms ends. Talking to a mortgage advisor, though? You can do that any time you want.
Get personalized advice
Our mortgage advisors will design a renewal plan that suits your needs.
Customize your mortgage
Our mortgages come with flexible payment schedules and great prepayment options.
Discover great rates
Understanding your mortgage renewal options
Your financial situation may have changed since you last decided on a mortgage. Your renewal is an opportunity to match your mortgage to your life now. Here are the options to consider and talk through with a mortgage advisor.
Choose a new mortgage term
You can select a new mortgage term when you renew. For example, if you plan to move within 5 years, or you’re advised that interest rates could be better in a couple years, you might want a 3-year term instead of 5 years.
Switch between a fixed or variable rate
There’s no one-size-fits-all answer to whether you should choose a fixed or variable interest rate. With a fixed rate, you'll know what to expect with every payment. With a variable rate, your payment stays the same but the ratio of how much of your payment goes towards interest and how much goes to paying off the principal may change. You do have the option to switch to a fixed rate any time, though.
Change the frequency of your payments
You can pay off your mortgage faster by increasing your payment frequency – this decreases the amount of interest you pay over your total mortgage period. If you were making monthly payments during your last term, you could change to biweekly payments. To see how the math works out, use our Mortgage Payment Calculator.
Make a lump sum payment
When it’s time to renew your mortgage, you can make a lump sum payment on your balance without penalties. This helps you pay off your mortgage faster. With a Meridian mortgage you can pay up to 20% more of your mortgage each calendar year through a combination of lump-sum payment and increasing your scheduled payments.
Frequently asked questions
You can renew your mortgage up to 5 months before your term ends without any extra fees. Your mortgage provider will send you a reminder several months before your mortgage term ends to tell you about the renewal process. At least 21 days before your term ends, the lender must provide a renewal statement. This will include:
- The remaining balance on your mortgage at the renewal date.
- The interest rate the lender is offering.
- Your mortgage term and payment frequency, which will stay the same for your next term unless you ask to change it.
- Any charges or fees that apply to your renewal.
Once you decide on the details of your mortgage renewal, you sign a mortgage renewal contract.
To learn more about the renewal process, talk to one of Meridian’s expert mortgage advisors.
At Meridian, you can begin the renewal process up to 5 months before your mortgage term ends. This gives you lots of time to review all your options and talk to an advisor.
Your new mortgage payment will depend on how interest rates have changed since you last signed off on a mortgage. If you’ve taken steps to reduce your principal balance, like making lump-sum prepayments, there’s a better chance that you may pay less. The best way to get a sense of whether your payments will go up or down is to talk to an advisor.
No, when you renew your Meridian mortgage you don’t need to reapply or re-qualify as long as your mortgage payments are in good standing, your property is in good standing, and applicable property taxes are current.
If you switch lenders, you need to go through the mortgage application process again.
If you’ve made all your payments on time, chances are that your current lender will renew your mortgage. There’s no rule saying that they have to offer you a renewal, though. If your financial situation has changed drastically – like if you have a lot more debt, if there’s been a big drop in your credit score, or if you are currently unemployed – your lender could decide that you can’t afford a mortgage renewal.
If you think there’s any chance that your renewal could be denied, get in touch with your lender as far ahead of your renewal date as possible.
Tip: You don’t need to have a Meridian mortgage to talk through your concerns with a Meridian mortgage advisor.
If your mortgage renewal is denied you still have options, including:
- Speak to your current lender. Find out why you were denied and if there’s anything you can do to help them reconsider.
- Reach out to other lenders. If you switch lenders at renewal and you have a CMHC (Canada Mortgage and Housing Corporation) insured mortgage, a new lender doesn’t have to apply the mortgage stress test when determining your rate.
- Consult a mortgage broker about which lenders are most likely to offer a mortgage to borrowers in your situation. Plus, they can negotiate on your behalf and advise you on getting approved.
Talk to your mortgage advisor - they’re experts in helping people budget for and manage their mortgage payments.
