Mortgage Renewal

Definition

• In the mortgage industry, renewal refers to ending an existing mortgage term and signing a new term for the continuation of the mortgage.

Synonyms
mortgage recommitment, mortgage resumption, continue mortgage loan, renewal letter, recommencement

Related Terms and Acronyms

• Amortization — Definition,
  • Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
• Biweekly Accelerated Payment — Definition,
  • A mortgage that schedules payments every two weeks instead of the standard monthly payment. The 26 biweekly payments are each equal to one-half of the monthly payment. The result for the borrower is a substantial reduction in interest payments because the mortgage is paid off sooner.
• Blended Rate Mortgage — Definition, Important,
  • If a homeowner renews his or her mortgage early, the old and the new mortgage rates are blended together to split the difference between the interest rates.
• Convertible Mortgage — Definition, Important,
  • A mortgage where the borrower has the option at specified times to change the term length.
• Insurance Renewal — Definition,
  • Extending the term length on an insurance policy.
• Mortgage (mtg) — Abbreviation, Important,
  • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
• Mortgage Assumption — Definition, Important,
  • Taking over the payment and responsibility for an existing property loan.
• Mortgage Broker (MB) — Acronym, Important,
  • One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
• Mortgage Brokerage — Definition, Very Important,
  • An individual or group who brokers deals between their clients and lenders.
  ➥ CanEquity is a mortgage brokerage.
• Porting — Definition,
  • A portable mortgage allows you to transfer the terms and conditions from an existing property loan to a new property loan.
• Posted Rate — Definition,
  • The mortgage rates initially offered by a bank which a borrower is then expected to negotiate down.
• Prime Rate — Definition,
  • The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
• Refinance — Definition,
  • To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
• Remaining Balance — Definition,
  • Unpaid principal on a loan.
• Renewal — Definition,
  • Signing on again with the same lender once a term is up.
• Roll Over Mortgage — Definition, Important,
  • A type of loan where the interest rate is set for a specific term. At the end of this term, the mortgage is said to "roll-over" and the borrower and lender may agree to extend the loan. If satisfactory terms cannot be agreed upon, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing.
• Second Mortgage — Definition, Important,
  • A mortgage which ranks after a first mortgage in priority on a registered land title.
• Term — Definition,
  • The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.