Renewing your mortgage is as important a financial decision as selecting your first one. When renewing your mortgage, you are in a stronger financial position as compared to where you were before. Your home equity grows over a period of time and by decreasing your principal loan balance, you are in a good position to negotiate.
However, many prefer to just sign their existing agent’s mortgage renewal form without trying to get a good deal on the new mortgage. This results in a higher rate and a mortgage package that does not cater to your individual needs.
With my expertise in the Canadian mortgage industry, I can help you get the most out of your mortgage renewal. This is a great time to consider paying off existing debts by clearing up high-interest credit card bills, renovating your home and looking at any other borrowing requirements.
Here are a few simple steps to make sure you secure the mortgage renewal that’s right for you:
1. Start as early as 120 days prior to the maturity so you can preplan your next mortgage term or access your financial situation for future borrowing requirements. Your lender may allow you to lock in your mortgage at the current rates and renew early without paying a prepayment charge, if you select a closed mortgage product with a term of 3 years or more.
2. Make sure you consult a licensed Mortgage broker or Mortgage Agent. They will ensure you have the latest product and mortgage information to help you make a final decision.