10 Critical Things to Know About Mortgage Renewal
Most Canadians don’t start thinking about mortgage renewal until the bank sends a renewal notice. Unfortunately, by then it’s too late to take full advantage of the alternatives.
Well, As your local renewal specialist, even if you come to me at the last minute, I can still likely get you a better rate. Being early is the one strategy which will get you the best mortgage renewal option that best suits your situation.
Here’s the reason why :
The majority of Canadians want to shop for better interest rate and mortgage options, when it’s time for mortgage renewal however only one third of them actually end up with better mortgage options.
The other half of homeowners simply end up accepting whatever they were offered, that is inflated interest rates.
Without doing proper research about mortgage renewal options, don’t panic to renew your mortgage. Here we have come up with a list of the top 10 critical things that you should know before you sign and send away your mortgage renewal docs.
Assuming you call the bank and request a lower mortgage interest rate than what they have offered, in the mortgage renewal statement.
You will be stunned to understand that practically 100 percent – time , all financial institutions will cut down the rate for you.
Well, it’s worth thinking about what better offer, rate , terms and conditions a professional mortgage broker can negotiate for you, by making banks fight for your valuable business.
It will keep you away from all the hassle of mortgage requirements.
Your conditions might have changed since you last got this loan. Now It is your opportunity to renegotiate a better loan term.
But to get the best mortgage offers you need to know that your bank probably won’t invest any more energy on you. Obviously they won’t tolerate their loss when it comes to offering good rates to homeowners.
However, an Independent mortgage advisor will gladly assess what is happening and suggest ways to take profitable decisions which can be beneficial for you in the long run.
By the way you dont have to wait for last 21 days start negotiating your mortgage renewal. It should be at least 90 days before the renewal day.
Lenders roll out new mortgage options and products to capture new markets for themselves. Sometimes they offer lower mortgage rates, liberal payment frequency, better prepayment privileges, cashback, investment opportunities, and much more.
Keep your mind open to options and see if there is something to benefit from. The least you can do is ask your lender if they can offer a product similar to or better than what’s out there.
Maybe it was a great idea to go with variable-rate mortgages initially because the rates were dropping and now the economic cycle has changed, and interest rates are going up. What if it is worth going for a fixed-rate mortgage? You will never know the market trends if you just sign away your mortgage renewal letter. Be wiser.
There is no such thing as bank loyalty these days. You are nothing more than a number for the bank.Banks don’t own you, it’s that simple. If your existing bank is not able to offer the best rate, features, and other associated terms and conditions, you should look into options. Due to lack of exposure, many homeowners feel overwhelmed and lack time to research on their own. To make things worse, there is no one reliable source where you can get all the correct info.
No wonder people prefer working with mortgage brokers instead. They take time in speaking to you and carving out a customized mortgage solution that best suits your short-term and long-term needs.
Let us secure your best mortgage renewal offer before it’s gone !
Feel free to connect with us, you will be happy you did!
Mark the date on your calendar 6 months in advance of your mortgage renewal date. Reevaluating your needs, wants, and financial goals for the next 5 years in advance helps you negotiate better renewal choices.
Do some research to learn about mortgage interest rate trends. If this sounds too much work and you are drifting towards simply going ahead with your bank’s mortgage renewal offer; PAUSE FOR A MOMENT! Speak to a mortgage professional. If you don’t have one, let’s connect with us.
Mortgage renewal time is the best time to pay off your mortgage in full or some part of it without paying any penalties whatsoever. Paying off the principal saves you heaps of money in interest payments (mortgage payment) and helps you lower the amortization period of your mortgage loan.
This is an opportunity to break your mortgage term with out triggering any pre payment penalties.
Yes! you heard it right. If you feel there is a need to tap into your home equity to pay off other debts or get cash out for home renovations or investment purposes or even get a line of credit, this is the time.
There will be no prepayment penalties which can save you lots of money especially if you signed up for a fixed-rate mortgage initially.
Don’t be scared if your existing mortgage lender tells you about the discharge fee or higher fee for your bank accounts when you move your mortgage loan elsewhere.
What you need to know is banks got their client retention department. Just like any other business, their mandate is to keep the client with them for as long as they can and they are good at it.
However, you as a borrower may be getting the short end of the stick in this tug of war. Don’t fall into this trap. There are lenders who will be happy to take care of those charges and offer you better rates and terms than what your existing bank may be offering.
Before triggering the lender switching as your mortgage renewal option you have to know, there is going to be a brand new mortgage application process i.e mortgage stress test.
You may or may not have to switch around your online banking and accounts depending upon the new lender requirements. New lender will require your Income, Credit, and existing home equity by getting a formal appraisal.
Conclusion:
It’s not a big deal if you have had relatively stable jobs. In case you have recently switched employers or switched industries, your options of lenders may be lowered.
To keep things simple and streamlined, join me for a quick discussion to sort out your issue. You will be amazed at what options I can offer you.
I hope by now you must have realized that there are lots of hurdles to land with the best mortgage product that offers the best interest rate along with the associated terms. However, Most Canadians are missing out on the opportunity and the benefits of mortgage renewal because of unawareness about better mortgage renewal options available in the market.
That’s why You do need a mortgage professional well versed with the products and options in the market so that they can guide you better and offer you not only the best offers but beneficial ones too.
No wonder almost 40% of home buyers go with independent mortgage brokers instead of walking into banks.
If you feel like you can’t get a better mortgage renewal offer try approaching a licensed mortgage professional, they will not only help you sort out your credit issues but also help you negotiate better mortgage terms and the interest rate for you.
So, Why sit on the couch and miss the opportunity to get the best and more out of your mortgage renewal offer?
We are simply a phone call away. You will be glad you did!