Normally you would have a 5-year fixed mortgage meaning you will renew in 5 years. Check your mortgage statement as it shows when it will be due for renewal. 3 months before the renewal you can start looking and check if there are other lenders who would give you a better rate or mortgage package.

I doesn`t matter if you break 3 years later or 6 month before the term ends. You will pay the same mortgage penalty, 3 month mortgage interest or Interest Rate Deferential penalty.

A little clarification to mortgagepro`s comment. It is true that you will pay a penalty regardless of the months remaining but the penalty could be drastically different between a 3 year and 3 month remaining term. There are 2 calculations that the banks use for penalties. 3 months interest calculation and Interest Rate Differential IRD. If the conditions are right 3 months penalty for 3yr or 3month term should be close. If the conditions are such that an IRD will be used to calculate your penalty then you are looking at a huge difference in penalty. Talk to your bank and they will calculate the costs involved for you. My suggestion is to consider a port of your mortgage. A port is where you move the mortgage term rate and balance to the new property with no penalties. You can straight port it (no change in any mortgage particulars). You can port increase where you need more money (term remains the same, higher mortgage amount and the rate is blended with todays rate). Or do a port reduction (same term, same rate, smaller mortgage amount required for new house, some penalty may apply but much less than a complete break). One last thing I should mention. Once you bank gives you your options please contact a Mortgage Agent to do some further calculations for you. Many people have benefited from switching to a new bank for their new home. This is especially true today where rates are much lower than any mortgage started over 2 years ago. In the end what you end up doing with your mortgage must depend on how much money you will save going forward. That should be your #1 priority, mortgages are very expensive over time, you have to find ways to minimize your costs. I would be happy to consult with you if you have any questions. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec.

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Hi all, i have a 5 yrs term mortgage that i got 2 years ago for a 4-plex i purchased. last month i contacted an appraiser who appraised the property. based on the appraisal the property is worth around 100k more than purchased. this means i can apply for refinancing and potentially take out some equity from the house. here is my dilemma: the mortgage is with excellent conditions - good interest. i got it through a mortgage broker with a big bank in canada. i have 2 options for the purpose of refinancing: either contact the bank who provided the mortgage directly or apply through a mortgage broker who can decide to work with different banks. the problem with going with a mortgage broker is that he already told me the new conditions will be worse than current conditions i have. if the current bank approved my refinancing application it would be with the same or better conditions! on the other hand, if i go with the current bank am i not taking a risk that if they do not agree to refinance the property because i do not meet their criterias (i am self employed now), then they will also not automatically renew my mortgage in 3 years when term is over!? note: if i do not contact them now, then my understanding is that the bank will automatically renew my mortgage since that is the law in canada: as long as you pay all your mortgage payments on time, the mortgage is renewed automatically without the need to re-apply/go through the application process again! i'm just not sure if i contact them now for refinancing and fail, that they will not keep record of my new 'bad' information (i.e. self employed, less stable, etc. whatever caused them not to approve me) and not automatically renew my mortgage when the term is over! bottom line i do not want to lose twice - once not being approved by the good/big bank now, and second damage my chance to be automatically renewed in 3 years. thanks & regards.

Unless things are really, really different in Canada as the USA then your mortgage will not automatically be renewed when it comes up in 5 years. Rather you will have to re-apply for a loan and if they don't like that you are no self-employed they won't renew. So, assuming this is the case there is nothing lost by going with your current bank. However, if you are worried just go with a different bank (or the mortgage broker, though I've never had any luck with them). I doubt the new loan your current bank would give you would be much better than a new loan from a new bank, so it doesn't matter so much which bank you use.

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My husband and i and our 5 children (and one born a month later) moved into our house august '10 we told the owner we would purchase the home in 6 months to a year while we cleaned up our credit and prepared to get a mortgage. we signed a regular 6 month lease with a 6 month extension that was to automatically renew unless terminated by either party. in january the owner told us circumstances had changed, because the bank he had a gotten a loan modification with found out he was not the one living in the house, and have revoked his loan, stating he has to either pay the 20,000 back payments or put the house up for sale. we agreed to this as we all knew the market was hard and the likelihood of a sale in the near future was pretty dim, allowing us the time we still needed to get a mortgage. in order to prevent foreclosure we said the bank representatives could come and examine the house, and the real estate agents could show the house. of course the owner is in a hurry to get things moving, understandably, but we told him it could take up to a year. the real estate agent had come into the home for an examination of her own, 6 weeks after the bank had come. the bank said the home was in good shape and thought they would have no problems selling the house. the agent went to the home owner and told him that the house should be condemned, torn down it was worthless and cps should be called on me. he went crazy thinking what in the world did we do to the house?? i told him she was lying he was more than welcome to come and see, she was mad at me because she asked me if i could clean up my house and i told her i had 6 kids had only moved in 6 months prior and was still unpacking, (and now packing) i was doing the best i could. a family of 8 has alot of stuff. so there is alot of clutter, i have boxes and tupperware containers everywhere. now they are against the walls so people can move in the house, there aren't holes in the walls or floors, nothing at all to make what she said even remotely reasonable. nor what she told the owner (i am in the process of filing an official complaint with her company). those things aside, the owner decided that if we cant buy right this moment he wanted us out and he would relinquish the house to the bank. his prerogative, but we have a lease, and he has to go to court to get possession of the house. he sent an email stating that he guesses we have to go to a month to month lease. that is what he said no straight answer, no straight terms, just that. my lawyer's assistant says he doesn't think that counts. doesn't think?? this guy supposedly went to law school, either it does or it doesn't...needless to say we are in search of a new lawyer, with no time to spare, as the owner now says we have to leave by april 30, as he is having a construction crew come and take down the back porch, pool, and entire playroom(a 2 car garage he transformed without permits) while we are still here, so really i'd like to know, can he do that if we are still living in the house?? and do these emails count since they are not very clear. or even if they were clear could they count? to clarify, email is the only way we communicate, he doesn't call, he doesn't come by the house, only through email since we signed the lease in july.

The critical things here are what your lease said about reasons for termination and when you got notice to leave. If your lease was automatically extended, then unless the lease calls for termination at the will of either party, you don't have to leave. How sure are you that your landlord's bank really found out that he wasn't living in the house and triggered the provision requiring him to either sell the house or live in it? At this time, the economy isn't so wonderful that banks want to own houses due to foreclosure, let alone because a customer renegotiated the mortgage and then rented out the property. Most banks will waive that if asked by their mortgagee. I don't care about what the realtor said because it isn't an issue. If lease has a termination at will provision, your state probably still requires proper notice. I don't know anywhere that permits an email to take the place of actual service of a 30 day notice done properly.

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My husband and i and our 5 children (and one born a month later) moved into our house august '10 we told the owner we would purchase the home in 6 months to a year while we cleaned up our credit and prepared to get a mortgage. we signed a regular 6 month lease with a 6 month extension that was to automatically renew unless terminated by either party. in january the owner told us circumstances had changed, because the bank he had a gotten a loan modification with found out he was not the one living in the house, and have revoked his loan, stating he has to either pay the 20,000 back payments or put the house up for sale. we agreed to this as we all knew the market was hard and the likelihood of a sale in the near future was pretty dim, allowing us the time we still needed to get a mortgage. in order to prevent foreclosure we said the bank representatives could come and examine the house, and the real estate agents could show the house. of course the owner is in a hurry to get things moving, understandably, but we told him it could take up to a year. the owner decided that if we cant buy right this moment he wanted us out and he would relinquish the house to the bank. his prerogative, but we have a lease, and he has to go to court to get possession of the house. he sent an email stating that he guesses we have to go to a month to month lease. that is what he said no straight answer, no straight terms, just that. my lawyer's assistant says he doesn't think that counts. doesn't think?? this guy supposedly went to law school, either it does or it doesn't...needless to say we are in search of a new lawyer, with no time to spare, as the owner now says we have to leave by april 30, as he is having a construction crew come and take down the back porch, pool, and entire playroom(a 2 car garage he transformed without permits) while we are still here, so really i'd like to know, can he do that if we are still living in the house?? to: michael - ny crash - via email?? cigar - we told them we would do that for the full amount he owed which is way too much than its worth but we don't want to move, we like the house. they said they wanted to try to sell it first before considering it. wrm - he has represented us in court before, i'm pretty sure you need a law degree to do that. not doing a lease purchase, we have about 2 months left on our credit repair, and then we can buy with 100% financing. artemis - i do not have a new owner, the ownership has not yet exchanged, that aside that wasnt my question, the new owner still has to go to court to order an eviction notice, i have possession, even if i was to move into an abndoned building, if i was to prove i was living for a reasonable time, the owner still has to go thru the courts to get me out, also since i have a lease any new owners bank or otherwise have to honor my lease as long as i pay them according to the terms of my lease.

Your lease is with the owner of the house. If the owner changes, why would you think that the new owner would be bound by the old lease? The old owner doesn't have to go to court to get you out. The old owner will have no possessory interest in the property. The NEW owner has a possessory interest in the property and you will not have a lease agreement with the new owner. The new owner can absolutely give you thirty days notice. If you fail to vacate by the end of this month then the new owner can file an eviction process against you (which will place an eviction on your rental history - which will make it much more difficult for you to find a new rental in the future). You have plenty of notice. You need to vacate within the time that has been given to you.