{"id":232,"date":"2023-03-28T09:02:29","date_gmt":"2023-03-28T09:02:29","guid":{"rendered":"https:\/\/budgetrates.ca\/?post_type=service&p=232"},"modified":"2023-04-13T07:58:47","modified_gmt":"2023-04-13T07:58:47","slug":"renewal","status":"publish","type":"service","link":"https:\/\/budgetrates.ca\/fr\/service\/renewal\/","title":{"rendered":"Renewal"},"content":{"rendered":"
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Renewal<\/h2><\/div>\n
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Many homeowners believe it is best to remain with the bank or lender that issued their initial mortgage.
\nThis is usually not the case.
\nNearly 70% of people just sign their mortgage renewal papers without asking any questions. When it comes to renewal offers, homeowners believe they are receiving a fair price because they are loyal bank clients.
\nNothing could be further from the truth.
\nBanks generate enormous profits on renewals at their regular rates since they know that customers are unlikely to shop around for a better mortgage.
\nTheir priority is not to help you save money; their priority is to make a profit.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n\n\t

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What is a renewal?<\/h2><\/div>\n
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Most mortgages in Canada are set up so that if payments are made on time every month, the loan will be paid off in about 25 to 30 years. We call this the amortization period.
\nBut mortgages have shorter periods than the time it would take to pay off the mortgage in full. These are called terms.
\nA mortgage term may be as short as six months or as long as ten years, with five-year durations being the most typical.
\nThe term is the length of time that your mortgage contract with your lender is in effect. The contract spells out the terms and conditions of the mortgage. This includes your interest rate, the type of mortgage rate you have (fixed or variable), and any fees that come with the contract in certain situations, like prepayment penalties.
\nWhen your mortgage term ends (or is close to its maturity date), it’s time to renew your mortgage, as long as you’re not at the end of your amortization period or have paid off your mortgage in full ahead of schedule.
\nIt is likely that the duration and interest rate of your mortgage contract will change at the renewal.<\/p>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t<\/div> \n\t<\/div>\n\t<\/div> \n<\/div><\/div>\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>\n\t\t

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Who is a renewal for?<\/h2><\/div>
Current homeowners with an existing mortgage <\/div>\n\t\t<\/div> \n\t<\/div>\n\t<\/div> \n<\/div><\/div>
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How does a renewal work?<\/h2><\/div>
Your mortgage lender, provided they are a federally regulated financial institution, will send you a renewal statement as\u00a0 your mortgage term nears its maturity date\u00a0(the most typical length being five years). This statement must be delivered to you by your lender at least 21 days before the end of your mortgage term.<\/p>\n

Your renewal statement will contain mortgage-related details, such as:<\/p>\n