Renewing your mortgage is a financial decision that is equally as important as selecting your first one. While renewing your mortgage, it is important to remember that you are in a stronger financial position, with equity that has grown in your home over a period of time. By decreasing your principal loan balance, you are in a much better position to negotiate. Many people often resort to signing their existing agent’s mortgage renewal form without exploring their options. This can often result in higher rates and a mortgage package that may not fit with your current needs.
When to Negotiate Your Mortgage Renewal
With every mortgage renewal comes the opportunity to reflect and assess your mortgage needs before you decide on a new mortgage product. Whether your term is 6 months or 10 years, if you qualify, your lender will mail your mortgage renewal agreement 30-90 days prior to maturity. When you receive your renewal agreement, you should explore your options and contact a Mortgage Broker to discuss what’s best for you.
What You Need to Know
Follow these simple steps to make sure you secure the mortgage renewal that’s best suited to your needs:
- Start early. Did you know that you can renew your mortgage as early as 120 days in advance? As a valued mortgage customer, you may be eligible for the early renewal offer. This offer allows you to lock your mortgage in at current rates and renew early without paying a prepayment charge, if you select a closed mortgage product with a term of 3 years or more.
- Consult a mortgage broker. They’ll make sure you have the latest product and mortgage information to help you make the right decision for you.
- Renew at maturity. Many people wait for their mortgage to reach maturity before thinking about their mortgage renewal. If this is the case for you, we will offer you the lowest rate within the last 30 days of your mortgage term if you choose a fixed rate mortgage. This way if rates increase you are protected during the mortgage renewal process.