When your mortgage is coming up for renewal, it is the perfect time to review your mortgage situation and consider renewal options. The best time to start planning is 120 days prior to the actual renewal date. This ensures finding the best mortgage product to renew with.
Unlike a purchase transaction, renewals do not have added expenses like legal fees—as long as the applicant(s) do not add or remove a party to the title or request additional funds. Lenders will want to see your credit and will need to verify your income to ensure you meet their approval requirements. The paperwork needed for a renewal is very minimal compared to a purchase transaction.
The minimum term on a renewal is 2 years. The minimum amortization on a renewal is 5 years. And the minimum mortgage amount on a renewal is $25,000.