Is it time to renew your mortgage?
Educate yourself on the renewal process before signing your renewal notice. One mistake could cost you thousands of dollars.
3-6 months before a mortgage term is complete, most lenders will send a mortgage renewal notice in the mail or email information to their clients. The notice will ask you to check a box to select a new term. Once signed, you then send the renewal notice back to the lender. Your payment may increase or decrease to reflect the new rate offered to you.
You don’t have to renew with the same lender. You can move your mortgage to another lender that offers lower interest rates and terms that better suit your needs. Lenders often offer higher rates on mortgage renewals with the mindset that most clients couldn’t be bothered with the work it takes to switch to a new lender.
Keep your current lender honest and do some research when renewing your mortgage. All it takes is a phone call, and an experienced mortgage broker should ask you questions about your current needs and future plans. This ensures that you’re offered a reasonable rate but, more importantly, the right product that better suits your needs.
Switching to a new mortgage lender is beneficial when you want to take advantage of lower rates without changing any other aspect of your mortgage. Lenders usually offer promotions to cover any costs associated with the mortgage switch. Most major lenders will cover costs associated with the switch if you are not changing the mortgage amount or amortization and the mortgage isn’t registered as a collateral mortgage on title.
The good news is you don’t have to shop for rates and products on your own. The Mortgage Centre We Connect has access to a number of lenders that provide a wide range of mortgage products and terms to choose from, including major banks, credit unions, mortgage companies and private lenders. You have options, and a few minutes of your time could save you thousands of dollars. Contact me today, and let’s get started on your stress-free renewal process!