Mark your current mortgage term’s maturity date on the calendar, then count back 120 days (~ 4 months) and mark that too; this is the date majority of the lenders will let you begin the early mortgage renewal process, meaning you could renew early with your current lender without having to pay a prepayment penalty (for breaking your term early). If you’re not ready to sit down with your mortgage broker or lender on this day, you can at least start researching your options online. By identifying which lenders are offering what, in terms of mortgage rates, prepayment options and other terms and conditions, you will be better armed to mediate when you are all set to renew.
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.
Along with your other financial goals, you should make a list of what you’re looking for in a mortgage product. To start, ask yourself a few questions:
“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.
As a homeowner in Canada, managing your mortgage effectively can save you thousands of dollars over the long term. Whether you’re looking to reduce monthly
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
