You may be asking yourself, when is the right time to renew my mortgage? You don’t need to wait until you receive the renewal letter from your lender, in fact it is most advantageous to be pro-active. A few months before the end of your current mortgage term, it is advisable to do some research to find out if there is a better mortgage option with terms and conditions that better suit your needs. If you don’t take charge of the process, your mortgage might automatically be renewed for another term. This means that you may not get the best interest rate and conditions.
Taking an active approach to finding the right mortgage is a financially beneficial strategy. For most people, the mortgage payment is one of the biggest chunks of their household budget. You may qualify for a rate that is lower than the rate quoted in your renewal letter, so shopping around and negotiating can save you money! Here are the steps you should take when considering renewing your mortgage.
Step 1: Evaluate your goals and needs
Life happens and things change over time; you may not be in the same place now that you were when you signed your original mortgage. Perhaps your income or expenses have increased or decreased affecting your monthly budget. You may have goals and aspirations to pay off your mortgage sooner or are planning to do some home improvements and will need funds for this purpose. Whatever your situation it’s important to have a close look, evaluate your needs, and decide what will work best for you.
Step 2: Compare your renewal options
Often mortgage brokers can offer a better rate than banks due to their access to multiple lenders. The Bank of Canada survey found that using a broker can result in getting a lower rate. Part of that is due to our ability to get multiple quotes from various institutions. Make sure the rate you choose offers other options such as the ability to pay extra on your mortgage and clearly defines any penalties should you decide to break your mortgage early. You can easily shop around compare the rates from various institutions to get an idea of what’s available. We are always more than happy to walk you through the options available to you and help you decide which renewal option is the best fit for you.
Step 3: Get Started
Renewal time is an opportunity to review your current financial situation and we can help you select the mortgage options that are right for you and your particular circumstances. Take charge of the process by working with a mortgage broker. We have access to many lenders and can help you easily navigate the mortgage renewal process!
Have questions about mortgage renewals? Contact your Kelowna Mortgage Broker to make an appointment today.
JOHN ANTLE MORTGAGES –KELOWNA’S MORTGAGE SPECIALIST
We specialise in offering mortgage solutions that go ‘above and ‘beyond the bank’. This means we are able to provide flexible solutions at great rates, often better than what traditional banks have to offer. Working with a mortgage broker can open up your options, allow for potentially greater solutions for your situation. We work with a variety clients including first-time buyers, those looking to transition from renting to owning, self-employed business people, as well as investors in rental and/or vacation properties.
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