Topic: Loans and borrowing A few things to consider before renewing your mortgage August 29, 2023
What does it mean to renew your mortgage?
With a mortgage renewal, you continue to pay down your balance, but under a new contract with new agreed-upon conditions.
The conditions for your next mortgage term include:
- The type of loan and interest rate
- The duration of the term (6 months to 10 years, depending on the rate)
- The payment frequency
Keep in mind that these new conditions must respect the maximum amortization stated in your loan agreement, that is, the number of years you have to completely pay off your mortgage. You may, however, set up terms allowing you to pay off your mortgage faster.
When should you renew your mortgage?
You can renew your mortgage at any time, but with a closed mortgage, you can avoid paying prepayment charges if you wait until the renewal period. With an open mortgage, you can generally renew without prepayment charges at any time.
The renewal period spans the last 4 months of your term. We'll let you know when this period is coming up and guide you through it.
Benefits to renewing your mortgage online
Straightforward process
Follow the steps to choose the conditions of your upcoming term and renew your mortgage in minutes.
Excellent offers
Choose among offers tailored specifically to you, with the lowest possible rates based on your file.
Help at your fingertips
We're here to guide you every step of the way. Chat with us, call us or use our integrated tools to make your choice easy.
Preparing to renew your mortgage
Start preparing for your mortgage renewal 6 months before the end of your term.
1. Assess your current situation
Review your income and expenses. Account for any changes that have happened since the beginning of the term. Make a detailed list of your income and expenses using our online budget tool.
This gives you a better idea of how much mortgage payment you can currently afford. It also helps you choose the conditions best suited to you when the next term rolls around.
2. Think about your medium-term plans and goals
List your upcoming goals, like a renovation, a move or retirement. Include all your plans, including your financing needs and goals for the next few years.
Examples include improving your financial management, reducing your debt or increasing your savings.
3. Talk to your advisor
Your mortgage advisor is there to guide you to renewal options tailored to your situation.
Let them know your thoughts so they can better identify your specific needs. They can also help you plan for your projects and goals while making sure your finances stay in check.
Special mortgage rates
4-year closed fixed-rate mortgage1
4.69%
This rate stays the same for 4 years.
5-year closed fixed-rate mortgage1
4.69%
This rate stays the same for 5 years.
5-year closed reduced variable rate mortgage1
4.95%
This rate varies with our prime rate
Our mortgage renewal advice
- Topic: Loans and borrowing Variation in mortgage rates: What should you do? August 2, 2024
FAQ
What does it mean to renew your mortgage early?
We'll inform you when you're entering your renewal period toward the end of your mortgage term. You renew your mortgage early when you renew before this period.
If you have a closed mortgage, renewing early often incurs prepayment charges, but is sometimes still worth it. For example, it may let you quickly change your mortgage conditions based on your needs or mortgage market trends. Talk it over with your mortgage advisor to see if renewing your mortgage early makes sense for you.
I have an annually adjustable rate. Does this mean I have to renew my mortgage every year?
No, you don't need to renew your mortgage every year if you have an annually adjustable rate. This type of mortgage is renewable at the end of your 5-year-term. Only your interest rate is adjusted annually. Your payments are the same for 12 months, then recalculated at the anniversary of your mortgage.
Can I fully pay off my mortgage balance when I renew?
Yes, the renewal period is a good time to pay off your balance without any prepayment charges. However, take the time to discuss it with your mortgage advisor to make sure it's the right choice for you.
Renew your mortgage
By phone
Make an appointment to renew your mortgage.
Monday to Friday: 8 AM to 9 PM
Saturday: 9 AM to 6 PM
Elsewhere in Canada:
1-844-626-2476 Canada-wide mortgage services. This link opens your phone app.
We can also call you when it's convenient.
Additional resources
Transfer your mortgage to us
With our help, get a mortgage that's a better fit for your financial situation and needs.
Refinance your mortgage
Leverage the value of your home to renovate or carry out other projects.