Hello Roma, if your mortgage term is coming to an end and you have not made a decision or signed renewal papers with your bank they will expect the mortgage to be paid out. if it is not paid out most lenders will automatically renew your mortgage to an open product (if they have such a product) and that will give you an opportunity to make a decision and change your mortgage without penalty. I wouldn`t count on an open term being issued though. Any product the lender automatically puts you into will most likely have a higher interest rate than any product you would choose for yourself so make arrangements before that renewal deadline. The good news is that this is the perfect opportunity for you to shop your mortgage around. Your lender will give you a rate and that rate will most likely be beaten by another lender who will also pay most of the costs involved in moving the mortgage over. In most cases the lender that does not have your business wants it more than the lender that already has your business so the discounts are usually higher. This is because the banks know that it can be a little bit of a pain to go from lender to lender sourcing out the best rate and there is an application process and signing to do. BUT don`t forget a mortgage is most likely to be the largest loan you will ever need so shopping your rate around can save you thousands over the next 5 years, and if you do this every 5 years those thousands add up to quite a bit of money that you never would have had otherwise. A Mortgage Agent can make your life a whole lot easier because we do the running around for you and as an intermediary strive to make every mortgage application as easy and convenient for our clients. Let us do the work for you. We can source out the best rates with all the available lenders, report back to you and you can decide if your bank is the best place to stay based on how much money will be saved over the term of your new mortgage. Loyalty should not play a part in your decision because the bank is not paying your monthly payments you are working hard for it each and every month. I would be happy to discuss mortgage rates with you or any reader. Give me a call; Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

If your mortgage is expired you don`t have to renew it and can stay on an open mortgage until you decide how you want to proceed. You should shop around to see if other lender will be able to give you a better offer then the current bank. Learn your options before committing to a new mortgage.

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According to the national realtor association home sales are up 17.4% in the last two months. --quote-- november home sales leap - new york (cnnmoney.com) -- after surging 10% in october, sales of existing homes jumped again in november, growing 7.4% compared with october to an annualized rate of 6.54 million units, according to the national association of realtors. "this clearly is a rush of first-time buyers not wanting to miss out on the tax credit," said nar's chief economist, lawrence yun. november was originally going to be the last month in which sales to first-time homebuyers would qualify for a federal tax credit of up to $8,000. however, that deadline was extended through june. in addition, the tax credit was expanded to cover people who already own a home. they can qualify for a $6,500 tax credit if purchase a new house before the end of june. that should encourage "trade-up" buyers. the strength of sales in november surprised the industry. a panel of experts compiled by briefing.com had forecast month-over-month sales growth of just 2.5% to 6.25 million from 6.1 million a month earlier. the sales total was also a huge improvement over a year ago. sales rose 45.7% over the paltry annualized rate of 4.49 million units during november 2008. the contribution made by first-time buyers is evident in a separate survey nar conducted of its members. they estimate that 51% of sales in november were by newcomers to the market, up a point from 50% in october. normally, first timers account for about 40% of sales. also propelling sales higher were rock-bottom interest rates. the average for a 30-year, fixed-rate loan during the month was just 4.88%, down from 4.95% in october and 6.09% a year ago. with rates that much lower, homebuyers can save more than $150 a month on a $200,000 mortgage. the industry expects home sales to slacken december, partially because of the tax credit's originally scheduled demise. that caused some buyers to push up their closing, stealing sales from december. however, sales will not fall off a cliff, though, according to walter molony, a nar spokesman. "the psychology seems to be turning around," he said. "potential buyers, who had been staying on the fence, now believe we're at or near the market bottom." one x-factor, however, is the vast numbers of homes that may come to market over the next few months. there is a large "shadow inventory" -- homes owned by banks and mortgage companies -- that have not yet been put up for sale. it could be as many as 1.7 million units, according to first american corelogic. in addition, another spate of foreclosures could be hitting the market as a number of option-arm mortgages are set to default. all that may drive prices down, according to shari olefson, author of "foreclosure nation: mortgaging the american dream." and the impact of these renewed price declines could again alter the market psychology. "people think that prices have bottomed," she said. "i don't think they have. people will see price declines and that will discourage them from buying." mike larson, a real estate analyst with weiss research has preached all through the bust that price declines are what will "fix" the housing crisis. "we needed to see prices fall to make ownership competitive with renting again, and to restore the normal relationship of house prices to income," he said. "that has now happened and you're seeing buyers come out of the woodwork as a result." still, they will have to come out in large numbers to offset the inventory overhang in some of the worst markets, according to olefson. in the florida condo market, for example, there is a 35-to-40 month supply of units at the current rates of sale, she said. prices still almost certainly have further to fall --quote-- source: http://money.cnn.com/2009/12/22/rea l_estate/november_existing_home_sal es/index.htm

home sales were down again in November - and there are millions more homes that will probably be foreclosed in the next yr or two, which will keep house prices down - the real estate market has years to go before most homeowners (including me) have positive equity again