What Happens If I Miss My Mortgage Renewal Date?

Short answer: If you miss your renewal date, most lenders automatically renew you, often into a short term at a posted rate that’s higher than negotiated rates. As long as you keep making payments you’re not in default. But you lose the chance to switch without a penalty, so call a broker right away to review your options.

Policies vary by lender, so your situation may differ.

Lenders Usually Remind You

Most lenders contact you months before renewal, often more than once. People still miss it because the letter is confusing, they meant to act later, or they weren’t sure what to choose.

Scenario 1: Auto Renewal

Many lenders renew you automatically, often into a six to twelve month fixed term at a rate that isn’t competitive and with limited prepayment options. You keep your home but lose negotiating power.

Scenario 2: Posted Rate

Some lenders move you to a standard or posted rate. You’re in good standing if you keep paying, but you may pay more than necessary until you renegotiate.

Scenario 3: Switching After the Date

Switching is easiest at maturity: no penalty, minimal costs. After an auto renewal, breaking the new term may trigger a penalty and normal switch costs. Still possible, usually more expensive.

Scenario 4: Missed Payments

Missing the renewal isn’t the same as missing payments. Keep paying and you’re generally not in default. Stopping payments is serious and can lead to foreclosure.

What to Do Now

1. Review your letter and statements: new rate, term, payment and amortization.
2. Call a broker: share the letter and let us explain your options, including renegotiating, switching or refinancing.
3. Decide: fix it now or plan for the next window, based on rate, penalty and plans.

Avoid It Next Time

Set a reminder six to twelve months out, keep your latest statement handy and talk to a broker four to six months before renewal.

How We Help

We track renewal dates, reach out before your term ends and help whether you’re early, on time or late. Book a call.

This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.