When you renew your mortgage, you generally keep the same interest rate, term and conditions as your current mortgage. Mortgage renewal is simply a new agreement between you and your lender to continue paying off your existing mortgage.
When you refinance your mortgage, on the other hand, you may be able to get a new interest rate, term or both. Mortgage refinancing usually involves taking out a new mortgage that is larger than your current one and using the extra money to pay off your old mortgage. This process can also be used to consolidate your debts or finance home renovations.
So, which option is right for you? It depends on your personal situation. If you’re happy with your current mortgage and don’t want to make any changes, renewing may be the best option. But, if you’re looking to save money on your monthly payments or pay off your mortgage faster, refinancing may be the way to go.
Talk to your lender about your options and see what makes the most sense for you.