Renewal and switching preparation checklist

Clients nearing the end of a mortgage term often ask their lawyer or notary first. Use this checklist to help them prepare.

Timing

• Find the maturity date on the current mortgage statement.
• Note when the lender sends its renewal offer. Many lenders send it well ahead of maturity, so ask.
• Check the current lender's rules on early renewal or switching, and any penalty if the client acts before maturity.
• Decide on a deadline to answer the lender, so the client doesn't renew by default.

Compare options

• Compare the renewal offer with offers from other lenders, not only the interest rate.
• Ask about prepayment privileges, portability, and the penalty formula for breaking the mortgage.
• Ask whether a switch at maturity includes legal and appraisal costs, and who pays them.
• Consider whether a client wants to change the amortization, term, or add funds.

Documents to gather

• Current mortgage statement and renewal offer.
• Recent property tax bill.
• Government photo ID.
• Proof of income, if the new lender requires it (a straight switch may require less than a switch with increased funds).
• Home insurance details.

Questions for the legal professional

• Is the title clear, and are there any liens or changes in ownership?
• Does the lender need a new registration, or only a renewal agreement?
• Are there any legal fees for the client's chosen option?

General information only, not mortgage, legal or financial advice. Rules and lender policies vary by province and lender.