Answering Your Biggest Questions About Renewing a Mortgage

2 minute read

You have a lot of choices to make when you renew your mortgage. At Kindred, we want to inspire peaceful, just, and prosperous communities, and that means seeing our members prosper as well. Here are some answers to common questions about mortgage renewals, so that you can make the best decisions for your particular situation.

How do mortgage renewals work?
A mortgage renewal is simply the process of coming to the end of a mortgage term and the re-negotiation of a new mortgage term. This usually takes place anywhere between 1 and 5 years after you signed your last mortgage agreement, depending on what you agreed to back then. There is a 6-month period to meet with a lender to renew your mortgage.

The lender will review your income, spending, and other factors to help you come up with a new plan. Likely, your interest rate will change. You can also change the frequency of your payments at this time. Use Kindred’s helpful mortgage calculator to help you see what your options might be.

What Should I Consider When Renewing My Mortgage?
You will want to think about what your home ownership goals are. You will want to consider what has changed since the last time you renewed. Has your family grown, or are you on your way to being an empty-nester? Has your family income changed? What is your capacity in terms of payments? How long do you want to live in this house? Might you upsize in the near future, or possibly downsize? All of these factors should be discussed with your lender.

Should I renew my mortgage early?
This very much depends on your individual situation. As mentioned, there is a six-month window in which to early renew your mortgage, up to the renewal date. In deciding when to renew your mortgage you should consider how long you plan to live in the home, whether you want to downsize, or if you want to renovate. Whether or not you choose to renew early depends on a lot of factors with interest rates often being one of the biggest. However, you should take a look at your entire financial plan when making this decision.

Can I pay off my mortgage when it comes up for renewal?
On your renewal date, your mortgage is open so you can apply a prepayment in any amount to the balance of the mortgage. You can make an extra payment of any amount, up to and including the entire balance, without penalty.

The best thing you can do when renewing your mortgage is get professional mortgage advice. Speak with a member of Kindred’s Personal Lending Team to learn more about renewing your mortgage and to learn about our rate specials. You can stop by your nearest branch or book an appointment today! And check out or helpful YouTube videos on mortgage renewals. With Kindred, you’re closer to home!

Kindred Credit Union

At Kindred, we believe you have a better choice for banking. We believe values and faith are central to life, and financial decisions are not values-neutral. In fact, we think financial decisions can impact the world in amazing ways—so our values are integrated into everything we do. We call this Banking with Purpose.

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