Renewal and refinancing solve different problems
A renewal generally continues financing when a mortgage term ends. Refinancing replaces or restructures an existing loan and may involve changing lenders, accessing equity or funding improvements. Either can require a fresh underwriting review; an existing mortgage does not ensure new financing.
Start with the current mortgage
Review maturity, remaining balance, amortization, security and any restrictive conditions. Request accurate payout information before comparing alternatives. Breaking or moving a mortgage can involve costs that change the economics of refinancing.
- Current mortgage statement, maturity date and renewal offer
- Payout, discharge and potential prepayment costs
- Existing guarantees, additional debt and registered encumbrances
Update the building’s financial story
Provide a current rent roll and recent operating information, not just the documents used at the last closing. Changes in occupancy, expenses, maintenance or legal use can change lender assessment. Improvements and increased rents need evidence, not assumptions.
- Recent income and expense statements and current leases
- Repairs completed, capital work planned and relevant reports
- Borrower financial updates and intended use of refinance proceeds
Compare more than the payment
Consider conventional and, where eligible, CMHC-insured options. Review term, amortization, covenants, guarantees and future flexibility alongside total costs. A lower scheduled payment may reflect a longer repayment schedule rather than a lower overall cost.
Coordinate the transition
New financing must satisfy lender conditions and legal requirements. If switching lenders, your lawyer coordinates the payout and replacement security. Discuss the maturity date early; avoid assuming a lender can complete a complex file at the last minute.