Is Your Mortgage Coming Up for Renewal?

July 6, 2021

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Is your mortgage coming up for renewal?  Don’t just renew it renegotiate to ensure you are signing for the best mortgage product to suit your needs.

Home mortgage agreement are established for a specified period of time and when this time comes to an end, borrower must either pay off the reminder of balance or must enter into another agreement with a new term and rate.

Most home owners simply renew their mortgage with their current lender without analyzing their future financing needs/goals. Mortgage renewals present a perfect opportunity to not only change a term of your next mortgage but also to switch to a complete new lender to help make sure you are getting into a right mortgage product with the right term and right rate to match your goals. Lender must notify borrower in advance of a mortgage term coming to an end with the renewal offer. However, lender are not required to send these renewal offer well in advance. Thus it is in homeowner best interest to know when their term is coming to an end to explore their options.

A lot can happen during the term of new mortgage such as a arrival of a new baby, job change, kids going off to university or may be it is time to upgrade. Whatever these changes may be, homeowner should make sure to consider those before signing up for the new mortgage term and conditions.

As mortgage broker, we have the expertise and experience along with access to many lenders to help our clients. We shop for our clients to help them to renegotiate with their current lender and if they choose allow them to switch lenders to get them the mortgage product that best meet their needs.

While mortgage renewals offer many benefits, it is also important for homeowners to know when to switch lenders. We can help analyze savings from the switch to ensure savings are worth it. When a borrower is switching lenders, they will have to undergo the whole mortgage process again – qualify for the mortgage based on their income and debt ratio. If the savings are not significant, it may not be worth an effort as current lender tends to renew without re-qualifying the borrower.

Let us provide you with mortgage renewal advice to get the best rate and term for your next mortgage.

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