MORTGAGE RENEWAL

Is your mortgage renewal fast approaching? Get a second opinion so that you can feel secure you receive the best deal. Lenders send out your mortgage renewal forms just prior to renewal dates to those with good payment histories. Most homeowners will sign and send it back without asking any questions. In today’s busy world that can be the easiest, but you should ask yourself some questions before you sign on the dotted line.

Has my mortgage needs changed? This would be the perfect time to re-evaluate these needs. For example, this may be the right time to maximize your home equity for a renovation project? Or maybe you’re considering purchasing a rental property, cottage or vacation property. You may want to consider a debt consolidation; many Canadian homeowners have taken advantage of historically low rates – and rolled all their other higher-interest debts into a mortgage.

Are you confident you will get the best rate at renewal? With multiple lenders competing for your business you can ensure you get the best rate and product for your situation.

Keep in mind that there are some administrative details when switching your mortgage to another lender. It doesn’t cost you anything to investigate your options. If you renew with your lender, you are extending your existing mortgage at current rates and terms. If you switch your mortgage to a new lender, you will go through an approval process similar to when you took out the original mortgage.

What will it cost you? Your lender will charge a discharge fee to transfer your mortgage. Most lenders will cover the appraisal and legal fees for a transfer with no new funds. You will need to pay legal and appraisal fees if you are getting a completely new mortgage instead of switching your existing one. We will assess if the money you will save by switching to a better interest rate offsets that cost. It’s possible that you could also pay more for mortgage life insurance because your new premiums will be based on your current age.

Contact us four months prior to your renewal date to examine your renewal options. Once approved, your rate will be guaranteed for up to 120 days. If rates go down you get the lower rate, if rates go up you get peace of mind. There is no cost to you; the lender selected pays compensation for the services and solution provided. And since a mortgage broker’s business is built primarily through referrals from satisfied customers, your positive mortgage “renewal” experience is essential!