1Onefund Financial – Our top five tips for mortgage renewal
If you are reaching the end of your mortgage term, chances are that you will soon get a renewal letter from your lender. The process sounds simple. They give you an offer and you sign it and send it back to them. But is that really the best thing to do when it is time to renew your mortgage? We don’t think so!
Here are our top five tips for renewing your mortgage:
Consider your current financial goals and circumstances.
Most mortgage terms in Canada are five years. A lot can happen during that timeframe and your circumstances may have changed. Do you really want to sign on for another five years? Maybe you want to pay off your mortgage early and a two-year term would be better for you. Or maybe you want to switch from a fixed rate mortgage to a variable rate – or vice versa. Take a look at your financial goals and circumstances and see if the same mortgage terms still make sense for you.
Consult with a mortgage broker.
You should also consider whether the same lender is right for you. Perhaps your current mortgage is with a bad credit lender and you can now qualify for a mortgage with an A lender. Your mortgage broker can shop around for you to make sure you are getting the best rate possible with the right type of lender.
Ask for a better rate.
Even if you want to stay with the same lender, there is a good chance that they did not offer you their best rate in their renewal letter. So why not just ask them for a better rate! If they agree, it could save you thousands of dollars.
Get a rate hold.
Once a lender makes you an offer they will usually hold that rate for you for a specified period of time – often up to 120 days! Getting a rate hold from a lender allows you to shop around for a better rate without fear that the offer you do have will expire in the meantime.
Give yourself time to change lenders.
If you are thinking about switching lenders, you need to make sure you give yourself enough time. Switching lenders will require documentation and paperwork, so you need to start the process early. If you leave things until the last minute, you may not have any choice but to sign back on with your current lender.
Contact us today
If your mortgage is coming due for renewal, we can help. Contact us today for help getting the best rates and terms on your mortgage renewal.