What does it mean to renew your mortgage?

In Canada, the majority of people who buy property do so by taking out a mortgage, which is typically repaid over a specific period of time through a process called amortization. However, most mortgage contracts only last for a period of one to five years.

Once the contract comes to an end, the homeowner is required to either repay the entire mortgage loan in full or negotiate a new mortgage contract.

The process of negotiating a new mortgage contract is called a mortgage renewal.

You do not need to renew your mortgage with your original lender. This is a great time to explore your options!