Renewing Your Mortgage
When it comes close to your mortgage renewal time, your current lender may send you new renewal offer rates that are almost guaranteed to be higher than they should! They know they can, because it is more convenient for homeowners to accept what’s in front of them.
Instead, we suggest you contact us 3-6 months before your renewal (if you’re a current client, we’ll contact you). We can negotiate and do all the research for you. The decisions you made all the years ago may not be right for you now. We can construct your mortgage terms with respect to your life plans for the future.
Should I renew early?
Before you do an early renewal:
- Find out from your lender the details of a prepayment charge or any other associated costs
- Find out from your lender if there are any options to capitalize the prepayment charge or if there are any restrictions on what you may early renew into
Will I get a prepayment charge?
You may need to pay this fee if:
- You have a closed term mortgage
- You renew your mortgage before the end of the term
What else should I keep in mind?
- Switching lenders should not cost you anything, and because your mortgage amount and amortization remain the same, it’s free for insured, insurable and conventional mortgages.
- The paperwork won’t transfer over and you will need to re-qualify, but we can help you with that.
- New lenders will generally pay for all of your legal and appraisal fees.
- If you are changing your mortgage amount and amortization, it will be classified as a refinance. Normally, in this case, there are appraisal and legal costs.
- If you do not renew, your lender will typically put you in a one year term at the interest rate they will offer in the letter they will send prior.