Renewals and Running Accounts

When a lender registers a mortgage on a title they get to choose if they wish for it to be a running account. If they choose this, the mortgage has the ability to be readvanceable and the client can opt to refinance without needing to see a lawyer. The downside is that even when the mortgage term is up for renewal, the client cannot change to a new lender without visiting a lawyer to break the running account charge. The client is tied to that lender unless they pay the legal fees. When shopping for a mortgage, ask if the mortgage is registered as a running account and the benefits and pitfalls of that kind of product.