When it comes to mortgages, renewing and refinancing serve different purposes. Renewing your mortgage means your mortgage term is coming due and you need to negotiate a new term and interest rate for your existing mortgage. Refinancing means you’re looking to replace your existing mortgage with a new one.
Mortgages
Mortgage renewal
What is it?
Renewing your mortgage is the process of extending or securing a new term and interest rate for your existing mortgage when the current term is about to end. It gives you the opportunity to reassess your financial situation, review your mortgage needs, and negotiate your mortgage terms and interest rates.
When to renew?
Mortgage terms typically last one to five years. It’s important to note that your mortgage doesn’t automatically renew. That’s why we recommend starting the renewal process three to four months before your current mortgage term expires.
Renewing vs. Refinancing
Your step-by-step guide to renewing your mortgage
Step 1
Assess your finances
Use our budget calculator to see what you may be comfortable spending on a mortgage payment each month.
Evaluate if you can afford higher payments or need smaller monthly payments. The type of mortgage you pick, along with the interest rate and term length, will affect your payment amounts.
If not already with Conexus, consider transferring your mortgage. Our Mortgage Switch Program can help cover some of the transfer fee costs.
Step 2
Choose your terms
Contact one of our Financial advisors to start the renewal conversation.
Discuss if you want the same mortgage product you had previously, or if you want a new one (e.g., choosing a fixed or variable mortgage, an open or closed mortgage, etc.).
Discuss current interest rates. Be mindful that interest rates do change and may be lower or higher than your previous rate, which in turn could decrease or increase your new payment amounts.
Choose your payment schedule.
Step 3
Review and sign your new mortgage contract
Work with your Mobile Mortgage Specialist or a Financial advisor on your new mortgage contract.
Sign the new mortgage contract with details agreed upon.
Tools & Resources
Calculator
Calculate your potential mortgage payments.
Money Advice for Life
Fixed vs. variable: there are many things to consider.
Have questions? That’s what we’re here for!
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