Things have likely changed since you signed your last mortgage agreement. Or maybe you're at a different life stage where change is imminent. Your mortgage should fit your lifestyle, financial situation and future goals. When it's time to renew your mortgage, do some research, compare your options, consider how creditor insurance for your mortgage can help protect you financially against death, critical illness, disability or job loss and do a self-assessment on what you have and what you need for your future.
Consider your circumstances
- Has your income changed?
- Have your expenses changed?
- Has your appetite for financial risk changed?
- Are you starting a family or getting married, or had a change in your marital status?
- Do you need to pay for tuition, a wedding or another milestone event?
Examine your goals
- Do you want to be mortgage-free faster?
- Does your home need a renovation or major repair?
- Are you moving in the future?
- Do you want to check off items from your bucket list?
- Do you want to pay a lump sum on your mortgage?
- Do you have a plan if your income is lost or reduced?
These answers could help you choose the mortgage that fits your life and make your dreams a reality. Find out if the payments could fit your budget with our mortgage affordability calculator.
Do your homework
Your lender starts the renewal process about 5 months before the maturity dateOpens a popup.. This is the time to do some research and meet with us. We'll help you explore products and find a mortgage that's right for you. Weigh the pros and cons of various mortgage options.
At renewal, you should consider more than just the posted mortgage rate:
- Amortization periodOpens a popup.. If you shorten your amortization period and increase your mortgage payments, you'll pay down your mortgage faster.
- Mortgage type (fixed-rate or variable-rate). If you choose a fixed-rate mortgage, the interest rate stays the same but tends to be higher. For variable-rate mortgages, your interest rate fluctuates up or down with the market.
- Payment frequency. If you make more frequent payments, you'll pay less interest and more of the principal.
Play with the numbers. Try out different amortization periods, mortgage types and frequency options to create your preferred payment plan with our mortgage payment calculator.
Assess your insurance needs. Take time to think about how you will manage your mortgage in the event of job loss, critical illness, disability or death. In those events, you can still pay off or pay down your mortgage with help from optional Creditor Insurance for CIBC Mortgages.
When can I renew my mortgage?
You may qualify to renew your mortgage as early as 150 days before maturity. If you do, lenders often waive any prepayment chargesOpens a popup. or other fees, depending on the mortgage type and other incentives.
Thirty days before renewal, time gets tight and you should take action. Leave at least 3 weeks to complete the paperwork.
Some people wait for their mortgage to reach maturity before renewing. At CIBC, we send out renewal offers about 30 days before the mortgage maturity date. But you can also apply to renew your mortgage early. Consult with a CIBC representative to discuss the best options for you. Other lenders may have different policies.
Make your choice
After you review your personal goals, do your homework and consult a CIBC representative, it’s time to decide. Pick the mortgage that works best for you and determine whether creditor insurance for your mortgage meets your needs.
