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:
- Contact your lender immediately to find out what terms have been applied.
- Ask if you can renegotiate the rate or term, especially if it was auto-renewed.
- Reach out to a mortgage broker who can search for better options even after the deadline.
- Review your financial situation to see if switching lenders is still possible.
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:
- Mark your calendar with your mortgage maturity date at least 90 days in advance.
- Sign up for email reminders from your lender or broker.
- Start comparing rates early, because most lenders allow rate holds up to 120 days in advance.
- Use a mortgage broker who can manage your timeline and paperwork.
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.
