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What Happens If I Miss My Mortgage Renewal Deadline?

What Happens If I Miss My Mortgage Renewal Deadline? Life moves fast, and it’s easy to overlook dates like your mortgage renewal deadline. Whether it slipped your mind, you’re still considering your options, or you assumed your lender would remind you, missing this deadline can affect your mortgage terms. The good news? You still have options, and what happens next depends on how quickly you act. In this guide, we’ll walk through the key outcomes of missing your mortgage renewal deadline in Canada and how to regain control of your mortgage terms. Different Scenarios You Might Face After Missing the Deadline Once your renewal date passes, your lender may automatically renew your mortgage or place it into a higher rate. Here are the most common scenarios. Scenario 1: Your Lender Renews Automatically Many lenders will automatically renew your mortgage into a fixed term with a higher interest rate, often their posted rate. This automatic renewal might be for a short term (like 6 months or 1 year) to give you time to reassess. Scenario 2: You Enter an Open Mortgage Temporarily Some lenders will move you to an open term mortgage, which allows you to refinance or switch lenders without penalty. However, this usually comes with a higher variable rate. It’s meant as a temporary solution. Scenario 3: You’re Treated as a New Applicant If too much time passes, your lender may require you to go through the full application process again, including income verification, credit check, and legal paperwork. This might be more difficult if rates have gone up or your financial picture has changed. Why Lenders Automatically Renew Mortgages Lenders prefer to retain clients, so they often send out renewal notices 30 to 120 days in advance. If they don’t hear from you, they may renew automatically to maintain continuity. These renewals rarely come with the best available rates or terms. That’s why it’s important to respond before the deadline or act as soon as you can. How to Respond If You’ve Missed the Deadline If your renewal date has already passed, here’s how to take control: The sooner you act, the more options you’ll have, and the more you may save. Prevention Tips for Your Next Renewal Avoid missing your next deadline with these simple steps: Conclusion Missing your mortgage renewal deadline in Canada isn’t ideal, but you still have options. Whether your mortgage was auto-renewed or placed into a more expensive product, you can explore better terms. By acting quickly and understanding your lender’s policies, you can regain control and position yourself for long-term savings.Mortgages365 can help you navigate late renewals and find a better path forward. Book a free consultation today.

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Should You Renew Into a 1-Year Term or Lock for 5 Years in 2025?

Should You Renew Into a 1-Year Term or Lock for 5 Years in 2025? Mortgage renewal decisions in 2025 are more complex than ever. With interest rates holding steady but inflation and market uncertainty still in play, choosing between a short 1-year term or a stable 5-year fixed rate has big implications. This blog breaks down the benefits, risks, and ideal scenarios for both options to help you make the most financially sound choice this renewal season. Comparing the 1-Year vs 5-Year Mortgage Renewal Options Both the 1-year and 5-year terms offer unique advantages depending on your goals, financial outlook, and expectations for the Canadian housing market. Feature 1-Year Term 5-Year Term Rate Type Usually fixed or variable Fixed Current Rates (2025) Lower than 5-year fixed Higher but stable Flexibility High – easier to change lenders Low – locked in for longer Risk Exposure High – rate may increase next year Low – stable payments Best For Rate watchers, short-term movers Budgeters, long-term stability seekers Who Should Consider a 1-Year Mortgage Term? A 1-year renewal term can make sense for homeowners who want flexibility or expect interest rates to decrease soon. You’re Planning to Move or Sell Soon If you’re not staying in your current home beyond the next 12 to 18 months, a 1-year term gives you flexibility without early exit penalties. You Expect Rates to Drop If you’re confident the Bank of Canada will lower rates in the coming year, locking into a short term allows you to renew into a better deal soon. You Want to Refinance Soon Some homeowners anticipate a credit score improvement or an income boost. A 1-year term lets you reassess and renegotiate under better conditions sooner. Who Should Consider Locking into a 5-Year Term in 2025? If predictability and peace of mind are your top priorities, a 5-year fixed rate is the safer option in 2025. You Prefer Stable Payments With a 5-year fixed rate, your mortgage payment won’t change for five years. This helps with long-term budgeting and financial planning. You Believe Rates May Rise Again Many experts say we’re near the bottom of the current rate cycle. If you think rates might edge up again in the next few years, locking in now protects you. You Don’t Plan to Move or Refinance If you’re staying in your current home and don’t anticipate major life changes, a 5-year term keeps things simple and secure. Additional Factors to Consider Before Choosing Before deciding, consider more than just the rate: A mortgage broker can help you review these fine details so you can make the most informed decision. Conclusion The right mortgage renewal term in 2025 depends on your financial goals, personal situation, and risk comfort. A 1-year term can offer flexibility and a chance at lower rates, while a 5-year term delivers long-term stability and predictable payments. Either way, reviewing your renewal strategy now ensures you don’t leave money on the table.Want expert advice tailored to your situation? Mortgages365 is here to help. Book your free consultation today and renew with confidence.

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