Why you need a mortgage broker at mortgage renewal time?

Think back to when you got your very first mortgage. At the time you were probably really excited about becoming a home owner. The farthest thing from your mind was your mortgage renewal. But before you know it, your mortgage does come up for renewal. What then?

Well, the first thing that usually happens is that you’ll get a letter from your bank or lender, letting you know that it is time to renew. For many Canadians this is the beginning and end of the process. They sign up for renewal with their lender and go on their way.

But this is a mistake.

A mortgage renewal notice will typically be sent to you about three weeks before you have to renew. This notice will contain all kinds of pertinent information including the interest rate you are being offered by your lender and the amount of money you have left owing on your home.

But don’t sign just yet!

Too many homeowners, when they get their renewal notice simply sign on for a new term without shopping around or comparing rates. Lenders know this and because they know this, they are unlikely to offer their best rates.

And while shopping around for a better rate on your mortgage might seem like a hassle, it can actually save you several thousands of dollars over the amortization period of your mortgage.

And shopping around isn’t just about getting the best interest rate either. You also need to look at the terms. For example, is it in your best interest to say with the same type of mortgage you currently have, or should you switch from a fixed rate to a variable rate or vice versa?  Your mortgage broker can help you determine this.

Call your 1Onefund Financial when it is time to renew

When it is time to renew your mortgage, remember that your mortgage broker is an important person to have on your team. They have access to a wide variety of lenders and can shop around on your behalf. Even if you wish to stay with your current lender, shopping around for other offers will put you in a better position to negotiate and possibly get better rates or terms than the one on your renewal notice.

Is your mortgage up for renewal or will it be in the near future? If so, give us a call today and let us help you get the best rates and terms for your situation.