Mortgage Loan Periods are typically Five (5) year terms. This means that every five years you may have to refinance your Mortgage. If you need help, please call our Recommend Mortgage Brokers and one of them can assist you by answering your questions or helping you find a new Mortgage.
You will only need to Refinance your home IF your Mortgagee/Lender does not offer you a Renewal of the terms of your Mortgage.
If your Lender does offer you a renewal, it will be on NEW Interest Rates offered at the time of the renewal. Unfortunately Mortgage Rates never stay the same. For Example, the average Mortgage Rates for Variable and Fixed Rate Mortgages were:
| YEAR | VARIABLE RATE | FIXED RATE |
|---|---|---|
| 2006 | 5.91% | 6.70% |
| 2009 | 2.42% | 5.72% |
| 2013 | 3.00% | 5.23% |
| 2016 | 2.70% | 4.64% |
As you can see, Variable Rates went down and then back up. Fixed Rates have progressively lowered. There is no certainty.
Most Lenders will compete to offer you better rates. If your Lender doesn’t renew or renews at too high a rate (eg. in 2010 offerred 2.10% but in 2016 offerred 2.95%) nothing stops you from finding a better rate.
Just remember, if you decide to find a new Lender, you will have to go through a Mortgage Approval process all over again.