A Guide to Mortgage Renewal in Nova Scotia: Ensuring the Best Terms

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Renewing your mortgage can be just as important as obtaining your initial loan. In Nova Scotia, understanding the nuances of mortgage renewal can help you secure better terms, lower interest rates, and save money over the long term. This guide will provide you with essential information to ensure you get the best deal when renewing your mortgage.

Understanding Mortgage Renewals

What is a Mortgage Renewal?

When your current mortgage term ends, you have the option to renew your mortgage for another term. This process involves reviewing your current mortgage agreement and negotiating new terms with your lender. It’s an opportunity to reassess your financial situation and ensure that your mortgage continues to meet your needs.

When to Start the Renewal Process

Lenders typically send a renewal notice about four months before your mortgage term expires. You can lock in a new rate with most lenders four months prior to your renewal date as well.  However, it’s wise to start considering your options well before that. Begin your research and preparations at least six months in advance to give yourself ample time to explore different offers and negotiate the best terms.

Steps to Ensure the Best Terms for Mortgage Renewal

Evaluate Your Current Mortgage

Before renewing your mortgage, take a close look at your current agreement. Consider factors such as your interest rate, remaining balance, and the length of your amortization period. Assess whether your current mortgage still aligns with your financial goals and if there are areas where you could secure better terms.

Review Your Existing Offer

Don’t assume that your current lender will offer the best terms.  It is wise to review the other options available in the market to see if you are getting the best deal or not. This comparison can help you find a more competitive interest rate and better terms. There are different mortgage programs you may or may not qualify for, and using a broker can save you time and effort during this process.  

Consider Using a Mortgage Broker

A mortgage broker can be an invaluable resource during the renewal process. Brokers have access to a wide range of lenders and can help you find the best deals. They can also assist in negotiating terms on your behalf, potentially saving you money and time, and their services are completely free when using traditional lenders.

Negotiating with Your Current Lender

Leverage Your Loyalty

If you’ve been a reliable customer, your current lender may be willing to offer better terms to keep your business. Use your loyalty as a bargaining chip when negotiating your renewal terms. Be prepared to show offers from other lenders to demonstrate that you have options.

Ask for a Better Rate

Don’t be afraid to ask your current lender for a better rate. Your lender may be open to negotiation, especially if they know you are considering other offers. Highlight any changes in your financial situation, such as an improved credit score or increased income, which could justify a lower rate.

Refinancing as an Alternative

When to Consider Refinancing

In some cases, refinancing your mortgage might be a better option than renewing it. Refinancing involves paying off your existing mortgage and obtaining a new one, often with different terms and conditions. Consider refinancing if you can secure a significantly lower interest rate, need to access equity in your home, or want to consolidate other debts.

The Benefits and Drawbacks of Refinancing

Refinancing can offer several benefits, including lower monthly payments, access to home equity, and improved cash flow. However, it’s essential to weigh these benefits against the potential drawbacks, such as any prepayment penalties, closing costs, and the possibility of extending your mortgage term.

Preparing for a Smooth Renewal Process

Improve Your Credit Score

A higher credit score could help you secure better mortgage terms. Before your renewal date, take steps to improve your credit score, such as paying down debts, making timely payments, and correcting any errors on your credit report.

Gather Necessary Documentation

Having all necessary documentation ready can streamline the renewal process. Prepare documents such as proof of income, employment verification, and details of your current mortgage. Being organized and ready to provide this information can help you move quickly when negotiating with lenders.


What happens if I don’t renew my mortgage on time?

If you don’t renew your mortgage before the term expires, your lender may automatically renew it for a short term at their posted rate, which is often higher than negotiated rates. It’s crucial to start the renewal process early to avoid this scenario.

How early should I start preparing for my mortgage renewal?

It’s advisable to start preparing for your mortgage renewal at least six months before your current term expires. This timeframe gives you enough opportunity to research different lenders, compare rates, and gather necessary documentation. Early preparation ensures you have ample time to negotiate the best terms and avoid any last-minute rush.

Can I make changes to my mortgage terms during renewal?

Yes, the renewal period is an excellent time to make changes to your mortgage terms. You can negotiate a different interest rate, change the term length, adjust your payment frequency, or even switch to a different type of mortgage. It’s essential to discuss your options with your lender or mortgage broker to ensure the new terms suit your financial situation and goals.


Renewing your mortgage in Nova Scotia doesn’t have to be a daunting task. By starting early, evaluating your current mortgage, shopping around for the best rates, and considering the help of a mortgage broker, you can secure favourable terms that align with your financial goals.

If you’re approaching the end of your mortgage term, reach out to Alex Lavender, your trusted mortgage broker, for expert advice and assistance in navigating the renewal process. Ensure that you get the best deal possible and continue to make sound financial decisions for your future.

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