While most Canadians spend a lot of time, and expend a lot of effort, in shopping for an initial mortgage, the same is generally not the case when looking at mortgage term renewals.
If you have a mortgage then your mortgage will come up for renewal at some point. This means that the terms of your mortgage will need to be renogiated. Missing this key date means that the lender you are currently with will automatically lock you in to a term of their choosing. You at that point may be locked in to a term that you can not afford or want!
Generally it is a good idea to start shopping for a new term between four and six months before your current mortgage term expires. Many lenders send out your renewal letter very close to the time that your term expires and this does not give you ample time to arrange for a mortgage term through a different lender. This means that you need to be tracking your own mortgage term time frame and know when it is time to start shopping for a good mortgage renewal rate.
Homeowners should never accept the first rate offer from their existing lender. Without any negotiation, simply signing up for the market rate on a renewal is unnecessarily costing the homeowner a lot of money on their mortgage. Before you accept an offer from your lender give us a call to review the other options available in the market. There is no obligation or application necessary. We will look at the details of your mortgage and compare your rate to the other options that are available. Because we don’t work for any particular bank, we will give you our unbiased advise as to what your options are and what you may want to do.
Your mortgage is one of your biggest expenses. For this reason it is imperative to find the best interest rates and mortgage terms you possibly can. By shopping around at renewal time you can save substantial amounts of money over the life of your mortgage loan. Don’t be one of the 60% who just simply sign their renewal letter and send it back.
Contact us below to schedule a call to discuss your mortgage renewal options. Alternatively, give us your renewal date and we will track it for you. We will get in touch with you when its time to start looking at options, so you don’t have to worry about it!