5 Mortgage Renewal Tips Every Homeowner Should Know
By : Mits Kantaria
It’s rare to see a mortgage paid off in full during the original term. Almost half of all Canadians will need a mortgage renewal at least once during the lifetime of homeownership.
Mortgage renewal is a straightforward process, and you can take the opportunity to find a better offer with a mortgage broker company in Ontario. If you know that the end of your term is coming up or if you’ve just received a renewal slip from your lender, it’s time to prepare for the process with these five helpful mortgage renewal tips.
1. Secure a Better Mortgage Rate with a Mortgage Renewal
When you receive a mortgage renewal slip from your lender, you might be tempted to simply renew with the rate provided. However, even if you receive a slight discount as an existing customer, it probably isn’t the lowest rate that the lender could offer.
Lenders bank on the fact that their customers are busy. Mortgage renewal with the offered rate is quick and easy, and plenty of homeowners simply go ahead without thinking too much into it.
You have the option to negotiate with your current lender to secure a lower rate, but you’ll need to contact them directly and this could take time. You could also approach other lenders for Mortgage renewal and shop around for a better rate.
Another alternative is to approach a mortgage broker company in Ontario. They’ll work for your interests to secure the best possible rate from a variety of lenders, some of which don’t engage directly with the consumer market.
2. Shop Around Early Before You Plan to Renew
You can also shop around before your renewal date. Early mortgage renewal is an option when you switch lenders. The mortgage market is constantly evolving. The rate you pay today could be much higher than the current market average. When the market is in favor of borrowers, it is useful to shop around as early as possible. In most cases, you could start as early as four months before the end of your current term.
This will give you plenty of time to see what’s out there before you get your renewal slip. Understanding the market can also put you in a better position to negotiate if you do decide to stay with your current lender.
3. Consider Your Long-Term Financial Goals
All your major financial decisions should be made in the context of your overall financial goals. If you originally signed for a 5-Year term, your lender would usually send you a renewal slip with an offer for an identical term.
But if you plan to move to a new city, if you expect that you might change your job in the future, or even if you think that you might downsize or upsize to a different home, then a 5-Year term might not be right for you.
Instead, you could seek a mortgage with a 3-Year term that would provide more flexibility. Understanding how a new mortgage would tie into your life and financial goals is key to getting a mortgage renewal that works for you.
4. Ask a Mortgage Broker Company in Ontario for a Rate Hold
When planning an early mortgage renewal, you might have some concerns about the rate changing during the process. A mortgage broker company in Ontario can help you to find some security with protection from changes in the market.
A broker will engage with the market on your behalf. You’ll only need a single credit check, and you won’t have to fill out multiple forms for different lenders. If you find an offer that you like, you can ask your broker for a rate hold that will lock in the offer for up to four months. And, even if market rates go down during the hold period, your broker can negotiate down to a lower rate.
The advantage of a rate hold is that it allows you to plan for an early mortgage renewal without the worry of the rate changing in the meantime.
5. Consider Switching Lenders for Early Mortgage Renewal
It’s quick and easy to remain with your current lender and sign a renewal once you receive your slip in the mail. However, as we’ve mentioned, lenders bank on the fact that consumers are likely to go for this option, so they don’t offer their best rates right away.
In addition to renegotiating the rate, consider switching lenders altogether. Canada has a large and robust lending market and there are countless options for mortgage renewal that you will only find with a mortgage broker company in Ontario.
No matter how good you think your current lender is, it’s worth exploring the market with a licensed broker to find the very best deal on early mortgage renewal.
Explore All Possible Options with a Mortgage Broker Company in Ontario
Signing for renewal with your current lender isn’t always the best option. Keep these tips in mind and seek the help of a mortgage broker company in Ontario for early mortgage renewal. Mortgage Capital Investment can ensure that you get the best offer so that your mortgage is suited to your personal and financial goals.
Lowest Residential Mortgage Rates in Canada*
|Term||OUR RATE||TD Bank Rate|
|3 Year Fixed/ 25 yrs||5.89%Promo||6.53%|
|4 Year Fixed/25 yrs||5.54% Promo||6.32%|
|5 Year Fixed/ 25 yrs||5.39% Promo||5.81%|
|5 Year Variable/ 25 yrs||6.20% Promo||7.15%|
|5 Year Fixed/ 30 yrs||5.99% Promo||6.39%|
|5 Year Variable/30 yr||6.80%||7.25%|
|3 Year Fixed/30yr||6.64% Promo||6.81%|
|**NEW RENTAL 5 Year Fixed /30yr||6.44% Promo||6.44%|
|** NEW RENTAL 3 Year Fixed /30yr||6.68% Promo||6.68%|
Updated: DEC 05 , 2023
* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion.Some condition may apply.Rates may vary between geographic regions and the posted rates on this website may not be available in your area.TD Bank rate used for comparable are the rate listed in the Broker Chanel Portal by TD Canada Bank at the date above. Please contact our MCI office for more details and current promotions.
LOWEST REGULAR RATES IN CANADA* * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.