Glossary term
Mortgage renewal
The creation of a new mortgage term after the current term ends, usually for the remaining balance and amortization.
Plain meaning
What mortgage renewal means
At term-end, a mortgage is generally renewed unless the remaining balance is paid in full. The next contract can have a different rate, payment, term length, and conditions.
How OpenBook uses it
New contract terms without inherent new borrowing
OpenBook uses renewal to explain why the contract rate, payment, term length, and conditions may change even when no additional amount is borrowed.
Common boundary
Renewal, switching, and refinancing differ
Renewal is not automatically the same as switching lenders or refinancing. Material changes can require different qualification and documentation.