Easy Mortgage Renewal Process

Continue enjoying fantastic rates, profit sharing cash dividends, helpful advice, and pay-down options to be debt-free sooner.

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Easy Mortgage Renewal Process

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What Is a Mortgage Renewal?

Every mortgage has a term length that can range from six months to 10 years. When your term is up, it’s time to consider what your next mortgage should look like. Mortgage renewal is a great opportunity to optimize your home loan and make sure it meets any changing needs or goals you have. 

You can explore locking in a better interest rate, adjusting your payment plan, or accessing your home’s increased value.

Your renewed mortgage can be designed to fit any new needs you have. Plus, you can continue to enjoy all the mortgage perks you’re used to, including an advisor to help with any questions you have.

Continue enjoying:

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Competitive Rates

You’ll find great mortgage rates for any term length of your choosing. Renew your mortgage and continue to save more!

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Cash Dividends

You earn cash dividends on a mortgage with us through our Member Rewards program. The more you bank with us, the more you benefit.

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Being Debt Free Faster

Pay down your mortgage faster with our 20/20 pay-down option. You can choose one or both options:

  • Pay up to 20% of your original mortgage principal each year without penalty.
  • Increase your monthly payments by 20% without penalty.
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Flexible Mortgage Renewal Options

When renewing your mortgage, you may want to revisit the options available to you:

  • Open mortgages let you make large payments without penalty.
  • Closed mortgages make budgeting easier since you’ll always know your mortgage payment amount.
  • A fixed rate protects against rate increases.
  • A variable rate floats with prime to take advantage of rate decreases.

Let's see some 20/20 pay down examples!

Let's say you have the following mortgage:

  • Mortgage: $200,000

  • Rate: 4.69%

  • 25 year amortization

  • Monthly payment= $1,128.17

You can increase your monthly payments by 20%. $1,128.17 x 20%= $225.63

This means your maximum monthly payment could be $1,353.80. ($1,128.17 + $225.63).

If you pay $1,353.80/month, your mortgage length changes from 25 years to 18.3 years!

Let's keep the same mortgage details.

You can put up to $40,000 extra on your mortgage per year ($200,000 x 20% = $40,000) over the course of your mortgage without penalty. This would also change your mortgage length from 25 years to 17.17 years!

See our mortgage prepayment calculator to enter your own pay down scenarios.

If you'd like to take advantage of our 20/20 option, contact us today!

Mortgage Renewal Calculator

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How to Renew Your Mortgage

Wondering, “How does mortgage renewal work?” It’s as simple as contacting us before your mortgage term ends. You can book a consultation with one of our advisors to go over your current financial situation and future plans. 

We’ll assess your income, expenses, and credit score to ensure your new deal has the best possible terms. Then, you’ll be presented with clear, personalized options. Our specialists will lay out the pros and cons of each choice.

A fixed-rate mortgage loan or a variable interest rate? A longer or shorter term? Make these important decisions with confidence, all thanks to friendly mortgage renewal tips.

After you’ve picked your ideal mortgage renewal package, we’ll simplify the paperwork process and coordinate with all involved parties. Renewing your mortgage can be a smooth experience!

What Is the Best Mortgage Renewal Time?

If you want to start your mortgage renewal process, the most appropriate time is around 4-6 months before your current term runs out. So, grab a calendar and take advantage of your mortgage renewal to review your home financing. 

You might even hear from your Innovation advisor around this time to discuss your mortgage renewal options. You’ll have the luxury of exploring alternatives without feeling the stress of a ticking clock.

Remember, just because this is a mortgage renewal versus your first mortgage, that doesn’t mean you’re expected to be a mortgage expert. We’re here to guide you through the entire process and help you pay off your mortgage faster! Be sure to ask about our prepayment options designed to save you thousands.

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More information

  • Available for personal use: principal residence, secondary residence, cabin, cottage, condo, non-revenue property
  • Conventional and Canada Mortgage and Housing Corporation (CMHC) approved
  • Interest compounded annually
  • Term lengths 1 ,2, 3, 4, 5, 7 and 10 years 
  • See current rates
  • All payment frequencies available
  • Prepayment options 
    • You can prepay up to 20% of the original amount of the mortgage during each 12-month period from the anniversary date. This privilege is not cumulative from year to year and does not apply if you wish to prepay the mortgage in full, renegotiate the rate, or prepay more than 20%. 
    • If you wish to prepay in full, renegotiate, or prepay more than 20%, you'll pay the greater of:
      • 90 days’ interest or the interest difference of the current posted rate of a similar mortgage type with an equal term. 
      • Innovation will allow 20% prepayment without penalty at the time of payout providing funds are not coming from another financial institution and the prepayment privilege has not been utilized since the anniversary date. (Mortgage schedules allow for the collection of the additional 20% penalty. The privilege is subject to change.) 
  • Payment increase 
    • During each term, you may increase the regular payment by a cumulative maximum increase of 20%
    • If the regular payment has increased, you may decrease the payment to an amount not less than original payment set at the beginning of the term
  • Property sold 
    • If the property is sold during the mortgage term, the penalty may be waived subject to you obtaining an Innovation mortgage of equal or greater value and selecting a minimum 1- year term. 
    • If the new mortgage is approved within 6 months from the date of payout of the previous mortgage, the penalty can be refunded upon disbursal of the new mortgage proceeds. 
  • Convertible and buy down options/consolidations:
    • Pay the greater of 75% of: 
      • 90 days’ interest or 
      • the interest difference of the current posted rate of a similar mortgage type with an equal term. 
    • May select any Personal Closed Mortgage product.
    • For consolidations, the above penalties shall apply or a blended rate as approved by our Retail Team.
  • Early renewal
    • 6-month option to early renew
    • Current expiry must be within 6 months or less
  • Applicable application fees

  • Available for personal use: principal residence, secondary residence, cabin or cottage
  • Conventional and CMHC approved
  • Interest compounded annually
  • Term length 5 years
  • See current rates
  • Blended repayment terms 
    • All payment frequencies available 
    • CMHC Blended 5-year term 
  •  Non-blended repayment terms 
    • On demand, lump sum – due in 1 year or less
  • Interest only option available only for a construction mortgage
  • Prepayment options 
    • Prepay the whole or any part of the principal amount outstanding without penalty, unless payment is received directly or indirectly from another lender or financial institution. If that is the case, you shall pay a 90-day interest penalty.
  • No penalty charged if the property is sold
  • Convertible and buy down options/consolidations:
    • Upon payment of a $100 conversion fee you may select any  Closed Fixed Residential Mortgage product 
  • Applicable application fees

  • Available for personal use: principal residence, secondary residence, cabin, cottage, condo, nonrevenue property
  • Conventional and CMHC approved
  • Interest compounded annually
  • Term length 1 year
  • See current rates
  • Blended repayment terms
    • All payment frequencies available
  • Non-blended repayment terms
    • On demand, lump sum – due in 1 year or less 
    • Interest only option not available
  • Unlimited prepayment
  •  No penalty charged if the property is sold
  • Convertible and buy down options/consolidations
    • Upon payment of a $100 conversion fee, you may select any Personal Mortgage product
  • Applicable application fees

  • Available for personal use: principal residence, secondary residence, cabin, cottage, condo, nonrevenue property
  • Conventional and CMHC approved
  • Interest floating – semi-annual equivalent rate calculation
  • Term length 5 year
  •  See current rates
  • Blended repayment terms
    • All payment frequencies available
  • Non-blended repayment terms
    • On demand, lump sum – due in 1 year or less 
    • Interest only option not available
  • Unlimited prepayment 
  • No penalty charged if the property is sold
  • Convertible and buy down options/consolidations
    • Upon payment of a $100 conversion fee, you may select any Personal Mortgage product
  • Applicable application fees
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Questions

Checklist - When applying for a mortgage, we'll need some documents and information. Here’s our mortgage application checklist. Sending us your current mortgage statement will also be helpful.

Residential Mortgage Security - When you borrow money to buy a house, we require security in the form of real property.

Mortgage Default Insurance - As per Legislation, we can only lend up to 80% of the purchase price or value of your new home. If you have less than 20% for a down payment, you'll need mortgage default insurance (pdf).

A protection plan provides peace of mind for you and your loved ones. During a tough time, you can focus on your family. We'll focus on protecting you from financial loss.

With an insured mortgage, if you are unable to make your mortgage payments, CUMIS, our reputable insurance company, will make the payments for you. You can apply for a variety of insurance types for your mortgage: disability, life, loss of employment, or critical illness. So, for example, if you lost your job and had loss of employment insurance on your mortgage, CUMIS would make your mortgage payments until you found a job again (up to maximum time noted in your policy). You wouldn’t have to worry about losing your home during such a difficult time.

 

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Save

Our No-Fee Bank Account has no monthly fees and no minimum balance requirements. Save ~$11/month in fees!

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Earn

Earn cash dividends simply by doing your everyday banking with us. The more you bank with us, the more you benefit..

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Give

Your business helps us support your community. We allocate 2% to 4% of pre-tax profits/year to our communities.

Renew your mortgage today!

Renew your mortgage to enjoy fantastic rates, service, and pay down options to be debt-free sooner. Remember to reference our mortgage application checklist to make the process even faster.

Renew Now

Need more help choosing your mortgage?

Try our mortgage selection tool!

Learn more about your mortgage options on the Financial Consumer Agency of Canada's (FCAC) website.

AIR = Annual Interest Rate

APR = Annual Percentage Rate

Annual Interest Rate = The total cost of credit expressed as an annual percentage, not including various non-interest charges.

Annual Percentage Rate = The total cost of credit expressed as an annual percentage, taking into account, both interest and various non-interest charges.

If there are no non-interest finance charges, the AIR and APR will be the same.

APR Assumptions:
a. $300,000 Mortgage
b. 25 Year Amortization
c. Applicable Term for Each
d. $400 Appraisal Fee

Applicable to residential mortgages only and subject to Innovation Federal Credit Union lending criteria for residential properties. Some conditions apply.

Interest rate compounded semi-annually not in advance. Interest rates are subject to change without notice.Applicable to residential mortgages only and subject to Credit Union lending criteria for residential properties. Some conditions apply.

Rates subject to change without notice.

Innovation Federal Credit Union will lend for properties located in Canada only.

Additional information for building mortgages could be required depending on the type of construction project you are undertaking.