What Happens When Your Mortgage Renews
By Tiffany Quaye · Last reviewed 2026-08-01
The short answer
At renewal your term ends and the remaining balance needs a new term. Your lender sends a renewal offer roughly 30 to 120 days ahead. You can sign it, negotiate it, switch lenders, or refinance — and the renewal window is the one time you can restructure without a prepayment penalty.
The timeline
- 120 days out: rate holds become available. This is when to start.
- 90–60 days out: compare offers, gather documents, decide whether to restructure.
- 30 days out: paperwork should be in motion if you're switching or refinancing.
- Renewal date: the new term begins. Doing nothing usually means an automatic term at a rate you didn't negotiate.
If your payment is jumping
Renewing off a very low rate can mean a payment increase of several hundred dollars. Options include a longer amortization, consolidating other debts so the overall monthly picture works, or a shorter term to stay flexible. The worst version is discovering the increase two weeks before it takes effect.
Questions people ask
Do I need to requalify at renewal?
Staying with your current lender generally doesn't require requalification. Switching lenders or refinancing does, which is why a straight renewal offer can be the only option for someone whose income has changed.
Can I negotiate my renewal rate?
Yes, and you should. The first offer is rarely the lender's best. A competing offer is the most effective negotiating tool.
Want this applied to your actual numbers?
Articles are general. Your file isn't. Bring your balances and your renewal date and I'll tell you what I'd do in your position.
Related reading
Not sure which option fits your situation?
Bring your numbers — mortgage balance, balances you're carrying, and what's stressing you out. I'll walk you through what's realistic, including when doing nothing is the better call.