Definition
Early renewal allows the borrower to renew their mortgage with the same lender before the official maturity, without a prepayment penalty.
**Typical window**: - Most lenders allow penalty-free renewal within the 120-180 days (4-6 months) preceding maturity - Some allow up to 270 days (9 months) in advance
**Benefits of early renewal**: 1. Lock in a low rate before it rises (rate hold for remaining duration + new term) 2. Avoid the stressful renewal window (risk of very high rate at maturity) 3. Align maturity with other life events (end of guardianship, inheritance, planned sale)
**Blended rate mechanism**: If early renewal involves a new rate different from the current one during remaining months, the lender may calculate a 'blended' rate (blend and extend) combining both rates (see `taux-mixte`).
**Negotiation**: - Early renewal is an opportunity to negotiate → compare with other lenders - A mortgage broker can analyze whether transferring to another lender (with penalty) is more advantageous than penalty-free early renewal with the current lender
**Note**: Early renewal without penalty is different from early repayment (which involves leaving the current lender by paying an IRD/3-month interest penalty).