If you have a private or second mortgage coming due, the worst thing you can do is wait for the renewal offer to land and sign it under pressure. The best outcomes come from starting the review 4–6 months before maturity — that’s when you have real options.
What actually happens at maturity
A private mortgage is usually a short-term arrangement — often a year. As the maturity date approaches, the current lender may offer a renewal or extension, but it typically comes with fees, and it may not be their best available terms. You are not obligated to renew with them; at maturity you can move.
The fees to watch for
- Renewal or extension fees charged by the current lender
- New lender and broker fees if you move, weighed against the savings
- Legal and appraisal costs on a new placement
- Open vs closed terms — an open term costs more but lets you exit early without penalty
The goal: move private → B-lender → A-lender
A private mortgage is a bridge, not a destination. If your credit and provable income have improved since the original placement, maturity is the moment to graduate up a tier — from a private lender to a B-lender, and eventually back to a mainstream A-lender — cutting your rate and fees each step. That’s the whole point of the exit plan. See exit strategy.
How to prepare before maturity
- Start 4–6 months out, not the week before
- Get your credit in the best shape possible (pay down balances, no new hard hits)
- Gather income documentation — pay stubs, Notices of Assessment, or business statements if self-employed
- Be ready for an appraisal to confirm current value
- Know your goal: lower the rate, consolidate other debt, or both
The one message that matters most
Begin the exit review at least six months before maturity — not after the renewal offer arrives. Early planning is what turns an expensive last-minute renewal into a cheaper, better mortgage.
General information, not financial, legal or insolvency advice, and not an offer of credit. Renewal is never guaranteed and depends on your credit, income and the property at that time. Private financing generally costs more than prime lending.