6 Mortgage Renewal Tips
When it’s time for your mortgage renewal, you may explore options with other institutions or like most homeowners, you may simply renew without any questions to avoid the headache. The truth is, the mortgage renewal process shouldn’t be frustrating at all. It’s actually quite simple, because as a broker we do the work! A mortgage renewal however is simply that, a renewal of all existing terms and conditions for another given period of time. How do you know that you don’t qualify for a better rate, a better term or better conditions? You don’t, and you will never know unless you take the initiative to move forward. Even if you don’t qualify for something better now, part of the mortgage renewal is to know when you do, so you are well aware of when to make the switch. Here are some great tips for helping you with the mortgage renewal process:
- Deal with a broker. That’s right, deal with a broker instead of trying to negotiate alone. Fact: Homeowners who deal with a broker pay less than those who do not! Over the course of a 5 year term, the savings can sometimes amount to over $1500.
- At renewal time, there is no penalty to switch lenders. Allow your broker the flexibility to explore mortgage products offered by other institutions. It is to your advantage to know what is available.
- Find a broker not weeks, but months before your mortgage renewal. No, the process is not that long and it won’t involve months of back and forth communication, but it does allow your broker the time to negotiate, provide supporting documents and get a commitment without the pressure missing the deadline. It is important to remember that your broker is usually fast with their response time, but many times the lenders can take longer to respond.
- It is unfair to assume what you currently have is the best you qualify for. Sometimes you will get quoted a rate that isn’t the best. Your broker will negotiate with different lenders to get them to match or even beat the competitor rates.
- Don’t get fixated on rate alone. Other options are important and can lower your payments, but you wouldn’t otherwise know this unless it was explained by a professional such as your broker. At the time of your mortgage renewal, reflect back on your last term. If you weren’t completely satisfied, see how a different amortization, payment schedule or rate type may benefit you.
- Do research to give yourself a better understanding of what’s available. There are hundreds of blogs with really great information, so it doesn’t hurt to ask your broker about the options you read about.
A mortgage renewal is more than an offer for renewal with your existing mortgage lender. It’s an opportunity to seek better financial options and at Canadian Mortgage Services, we have the expertise to advise, educate and negotiate with regards to your future financials. Make it a habit to have your broker represent you and your mortgage as you would have a lawyer represent you in courtroom or a stock broker represent your investment portfolio.