4 Things to Consider When Renewing Your Mortgage
If you are a homeowner, you know that your mortgage payments are one of your largest expenses. That’s why it’s important when your mortgage is up for renewal that you make sure you are doing what’s best for you and your financial well-being.
Many Canadians simply opt-in for an automatic renewal of their mortgage but did you know that by shopping around you could save yourself thousands of dollars just by looking at all of your options?
Here at the Mortgage Centre, we believe not only in finding you the best rate possible but also finding you the right mortgage solutions that meets your exact needs.
When nearing the renewal of your mortgage, here are four things to consider:
Plan Ahead & Start Early
It’s a good idea to start looking at your renewal options four to six months before its renewal date. You don’t have to take the rate your current bank offers you and often there is no cost to move to a new lender. The reason to start early is because most lenders provide you with a four month guarantee on your discounted rate. If you do your homework early, you can be prepared and know what all of your options are when it’s time to make a decision.
Getting this process started doesn’t have to be time consuming or take away from your already busy schedule. Having a ten minute conversation with a Mortgage Centre specialist can get the ball rolling and they will be able to find you multiple options from different lenders.
Do Your Research
Mortgage rates can vary tremendously. If your current mortgage is from a bank they may not offer you the best renewal rate possible. By researching your different options you may be able to find not only a better rate but also some features that aren’t offered by your current provider.
The great part about working with a Mortgage Centre broker is that we can shop around for the best rate on your behalf. Instead of having to go to multiple lenders and completing numerous applications, you can do one application with us and we take care of the rest. We work for you not the lenders so our priority is to always find you the best rate and package that works for your unique situation.
Looking Beyond The Banks
When you’re shopping around for mortgage renewal rates it’s important to not just look at what the banks are offering. It may seem easier to go through your current bank since you are already familiar with them but it’s a good idea to look beyond them. Just because they send you an automatic renewal notice doesn’t mean that you are obligated to stay with them. Banks adhere to stricter rules so it may not always be possible successfully negotiate with them.
For example, a mortgage broker can most likely get you a lower rate than what the bank is initially offering. Even a one percent difference in rate can equal a savings of $5000-$10000.
Looking at the Details and Not Just the Interest Rate
Your current financial situation may have changed since you signed for your first mortgage. You may want the flexibility to make larger lump sum payments or have the freedom of other options that your current mortgage doesn’t allow. In general, the lowest rate isn’t always the best option. It’s important to look at the mortgage terms and conditions as a whole.
One of the great features of working with a mortgage broker is that they can shop around for you and then walk you through all of the different options and help you weigh the pros and cons of each offer.
To sum it up, as good as your current lender may be, you can probably get a mortgage that suits your needs and benefits you better. It doesn’t hurt to look around and see what’s out there and know for certain that the rate and mortgage you are entering into is the right rate and conditions for your unique situation. Mortgage Centre specialists are here to help and are dedicated to finding you the best mortgage possible. We can shop around on your behalf without you needing to complete multiple applications. We work for you, not the lenders. Request a consultation today or give us a call. We’re happy to help.