If lenders decline to renew your mortgage, it means your financial situation has become much weaker. You may have to sell your home and switch to renting. Selling at short notice can be both stressful and expensive. That's why it's important to think through your finances when making the "rent or buy" decision in the first place.

your lender goes bankrupt

In the unlikely case that your mortgage loan provider goes bankrupt, your mortgage will be transferred to another lender who takes over the entire portfolio of loans of the bankrupt lender. To make the transition smooth, a trustee will be appointed to oversee the business of your bankrupt lender.

You still owe interest and principal and must keep making mortgage payments as scheduled in your loan agreement.
You will be notified if there is any change in how you should be making payments.

SAME LENDER

Your current lender's renewal statement will include your new mortgage rate for the same length of term as your current term.

There will be a section you can sign and send back.

You'll still have to go through the approval process.

If you made all your payments, it's likely that you'll be approved because your lender does not need to qualify you again (i.e. calculate your debt service ratios and stress-test them).
There is some risk that you may be turned down because your lender will still want to review your financial situation - current debt, employment income, credit score.

Some lenders allow you to extend the term of your mortgage before the end of its term. They may charge an administrative fee.

This is called 'blend and extend' because the interest rate you'll now pay will be a blend of the old rate and the rate you'd get in the market if you applied for a new mortgage now. By law, the lender must show you how the blended rate is calculated.

keep up with your mortgage

make payments when due

Make your mortgage payments in full and on payment date.

Payment frequency is specified in your contract, as negotiated with your lender. It determines the dates on which your payments are due.

If you don't make a payment one period, you need to catch up as soon as possible, and make the next scheduled payment on time. Let's say your payment frequency is monthly:

If you missed the July payment date, after a grace period, your payment is considered late and you'll be charged a late fee. Grace period is usually 15 days after due date. Late fees differ - the amount your lender charges will be spelled out in the contract.
If by your August payment date, you catch up with your July payment and also make your August payment on time, that's where the story ends.
If your July payment was late no more than 30 days, your lender most likely did not report it to the credit bureau at all. If they did, your credit score may take a small hit. Worse, the late payment will stay in your credit history for up to 7 years.
If you don't catch up with the July payment and only make the August payment on time, 'rolling late' happens, and it has serious consequences because your every payment is one month late.

If you ever feel you won't be able to make a payment, talk to your lender. It's much better to have a conversation in advance and negotiate a solution. Prepare for the conversation - reread your mortgage contract.

Next: Discharge Mortgage

A mortgage is the biggest and longest loan you'll ever have.

Keeping up with it is important.

you need to break your mortgage before the end of term

You may need break your mortgage before the end of its term if its terms and conditions no longer meet your needs. This can happen if:

Your financial situation or life style has changed and a mortgage with different terms will better suit your needs (or you're moving / selling your home and won't need a mortgage at all).
Interest rates have gone down and you can replace the current mortgage with a cheaper one.

The costs of breaking a mortgage before the end of term are big. It's important to know your contract and understand what is involved.

There can be a prepayment penalty and administrative fees. For a variable rate mortgage, the penalties equate to three months worth of mortgage payments (which is about 0.5% of the mortgage balance), plus a discharge fee of $200 to $600, depending on the lender. For a fixed rate mortgage, the penalties can be much higher (up to 4% of the mortgage balance). So it’s a good idea to call your lender and ask what you will need to pay to break your mortgage.
If you took advantage of any mortgage features, like a cash back, or special promotions, you may have to give it back. In mortgage terminology, cash back is a feature where your lender gives you a percentage of your mortgage amount in cash right away. You'll also have to pay the usual costs of discharging the mortgage.

renew for another term

At the end of the first term, most people will need to renew the mortgage - take out another loan to repay the balance on their current mortgage.

By the end of the first term, they will have paid back only a portion of the loan principal. This is because the principal was amortized over 25 years and the mortgage term was much shorter, for example 5 years.

At least 21 days before the end of term, your lender must provide you with notification.

If they want to renew your mortgage, they'll send you a renewal statement.
If they don't want to renew, they'll send you a non-renewal notification - you'll have to find a new lender if you still need to borrow money.

It's important to stay on top of your mortgage renewal because your mortgage may renew automatically if you don't take any steps, and renewal terms may not meet your needs. Your existing mortgage contract and the renewal statement will say if there is an automatic renewal.

You can renew the mortgage with the same or a different lender. Do some research a few months before the end of term to ensure that your current lender's renewal offer has a competitive rate and the terms you need.

Renewing with the same lender means less administrative work than with a new lender.
Your current lender will probably quote the lenders lowest posted rate and guarantee it for 30 days, protecting you from any increase in mortgage rates. It may not be the best rate available to you in the market.
You may find a better deal (better interest rate or terms that better suit you) with a different lender.
If you show your current lender a better offer from another lender, they may match it. It's always worth a try.

consider prepaypment

If you some some extra money, you may take advantage of the pre-payment clause in your open mortgage. Prepaying saves money because when you repay your principal faster, you'll pay less in interest.

Different prepayment clauses exist so reread your contract. For example, you may be allowed to:

Make prepayments of up to 10% to 20% of your original principal. This is valuable for people whose cash flow can be irregular - larger is some periods and then smaller.
Increase your regular mortgage payment by up to 100% on any regular payment date. The increased amount goes to the principal balance and helps you get debt free faster. This is valuable for people who expect their income to increase.

DIFFERENT LENDER

If you decide to change lenders for a better rate / terms, you'll have to apply for a brand new mortgage and use the money to pay the old lender in full.

There is some risk that mortgage rules and the qualifying rate for the stress test have become stricter since the last time you applied and you may not qualify for the amount of loan you require.

The information regarding your property title kept by the land registry must be updated.

Your or your lawyer must first discharge the previous mortgage.
Next the new lender will register its interest in your home.

There will be the usual costs of getting a mortgage, such as appraisal fee to verify your property’s value and a mortgage discharge and re-registration fee, an assignment fee. Some lenders charge an 'assignment fee' when you switch to another lender.

Ask your new lender if they will cover some / all of the costs of switching.

Don't forget to tell the new lender if you have mortgage insurance - otherwise you may end up paying the insurance premium twice. As your current lender for a copy of your insurance certificate or at least the certificate number. You may need assistance from a lawyer.