Renewal is the one moment in a mortgage term when your options are genuinely open and the cost of exercising them is lowest. It is also the moment most commonly handled by signing whatever arrived in the mail.
What changes at renewal
- Renewing with your existing lender for the same amount usually requires little or no requalification
- Moving to a different lender requires a full application and full qualification
- Increasing the balance requires qualification regardless of which lender you use
- Prepayment penalties generally do not apply at maturity, making restructuring cheapest then
If your lender has said it will not renew
A sensible timeline
| When to act | What to do |
|---|---|
| Six months before maturity | Review your situation and identify any qualification obstacles |
| Four months before | Address correctable credit or documentation issues |
| Three months before | Compare renewal options across lender categories |
| Final month | Complete paperwork; options narrow sharply from here |
If you are currently with an alternative or private lender, this timeline should start earlier still. Planning the exit from a short-term mortgage begins the day it funds, not the month it matures.
This article is general information only. It is not a commitment to lend, an approval, or legal, tax, or financial advice. Mortgage availability, rates, terms, fees, and approval depend on the applicant, the property, lender requirements, and applicable law. Please review your own circumstances with a licensed mortgage professional.