If you plan to live in the home for more than five years, you need not worry about portability that is, shifting the mortgage to a new property.
If you don’t plan on moving, refinancing or making huge prepayments in the upcoming five years, you can consider low-frills mortgages.
Most first-timer buyers opt for a 5-year fixed rate because they cannot afford an interest risk.
If you do go variable, look for one that maintains your payment the same regardless of interest rate variations. It’s easier for budgeting and gives you peace of mind if rates start climbing.
A lot can happen throughout your current mortgage term. Your financial goals at the beginning of your current mortgage term may no longer match up with your present goals. You could have received a substantial raise at work, lost some income or even retired.
By law, your current lender has to send you a mortgage renewal statement at least 21 days before your term is up, but they will usually mail you a renewal offer for their lowest posted rate that is good for the 30 days before maturity.
After shopping around, considering your financial goals, outlining your mortgage needs and receiving a mortgage renewal offer from your current lender, it’s finally time to make a decision.
“You may as well hand your wallet over to the granter,” says a buyer. If you identify that your current lender has the best mortgage features, advice and policies, ask your bank to match a competitor’s lower rate.
“If you don’t come right out and ask for a better rate, you won’t get one,” says a real estate lawyer in Toronto. He also claims that banks might be more desirous of lowering your rates if you transfer over other accounts or investments, such as an RRSP. Don’t just fixate on the interest rate. The amortization period, the rate type (fixed or variable) and the flexibility of the payment schedule can be crucial to lowering your costs.
Renewing your mortgage is one of the most pleasant occasions to evaluate your financial situation, check out better rates and prepare for the future. However,
Are you aware that at the end of your loan term, you can choose to renew your mortgage exactly as it was with the same
If you are reaching the end of your mortgage term – and you are not fortunate enough to be able to pay your entire mortgage
