Mortgage Blog

Getting you the mortgage you deserve

Renewal or Refinance?

May 4, 2021 | Posted by: Ask Ana Cruz

With so many mortgage terms floating around there are often two simple terms that often confuse many clients- Renewal and Refinancing

Today we are going to focus on what is the difference between the two term.

A renewal is when you reach the end of your term... for most people that means 5 years have passed and  it’s now time for you to re-negotiate the new mortgage terms with your current lender or a new one. If renewal is the option that makes the most sense for your mortgage needs, you have decided to take a new term and everything is staying the same. You are going to continue on with your amortization and you’re not making any changes to the existing mortgage amount or title.

A refinancing can be done at any time however,  many people take advantage of doing this at renewal time to avoid any penalties- thus the confusion between refinancing and renewal. Refinancing is when you were looking to take equity out of your home, change any aspect of your mortgage such as amortization or amount or adding/removing someone from title.

Example if your renewal is September 1st and you want to refinance this means on September 1 we will put a new mortgage in place for the new amount and amortization you want.

So why would you refinance? Depends, the reasons are different for everyone. It can be to take equity out of the house or extend the amortization to reduce the monthly payments. There are countless reasons

Mortgages can be confusing and so that’s where we come in. You don’t need to know the terms for everything, all you need to know is, what you want and what you need. We are the ones to figure it out and present you with your best options. 

I hope that helps clear up the differences between renewal and refinancing 

If you want to see which option is best for you then connect with me and I’m happy to work out the options best suited for what you are looking for.

So until next time I hope you have a great week take care


Email me at | Call or text 905-870-0513 


Back to Main Blog Page