RENEWAL
Mortgage renewal occurs at the end of your mortgage term (for example, 5 years) when you have not yet fully paid off your loan. Unlike the full term of the loan (which can be 20 or 25 years), the term is the period during which your interest rate is fixed and your terms are in effect.
Here's what it consists of:
1. Negotiating new terms: Before your mortgage term expires, your lender will offer to renew your loan with new terms, such as a new interest rate and term length (e.g. another 5 years).
2. Renewal options:
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You can accept the offer from your current lender.
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You can shop around with other lenders to get a better rate or terms. If you find a better deal, you can transfer your mortgage to that new lender.
3. No Requalification: Unlike a refinance, renewing typically does not require you to go through the entire approval process again if you stay with the same lender.
Renewal is therefore an opportunity to review your needs and look for better conditions for your mortgage.
It's my job to negotiate these terms for you.