Renew Your Mortgage
Renew Your Mortgage for the Best Rates
Are you looking to secure the best rates and terms for your mortgage? Renewing your mortgage allows you to reassess your financial situation and lock yourself in more favourable conditions.
Benefits of Renewing Your Mortgage
- Discounted Interest Rates
- Affordable Monthly Payments
- Customized Payment Plans
How Our Mortgage Brokers Can Help
Our experienced mortgage brokers have access to a wide range of lenders, helping you compare your options and choose the one that fits your needs. By renewing your mortgage, you can get the best interest rates and renegotiate key loan terms. We assist in comparing:
- Interest rates
- Lender fees
- APR (Annual Percentage Rate)
- Monthly payments
How to Renew Your Mortgage for the Best Rates
To ensure you get the best deal, mark the date your mortgage term ends on your calendar. Begin the renewal process 120 days before the end of your term. This is the ideal time to secure early renewal rates. Most lenders allow early renewal with no prepayment penalty. Before you meet with your lender or mortgage broker, you can start by researching available mortgage rates, prepayment options, and other online terms. This will give you a strong position when it’s time to negotiate.
Call us Now & Get Approved
Four Key Considerations Before You Renew
Evaluate Your Financial Goals
Major life changes, such as bankruptcy, job loss, or retirement, can affect your finances. Assess your financial situation to determine whether the renewal terms align with your long-term objectives.
Prepare for the Final 30 Days
As your mortgage term nears its end, your lender must send you a renewal notice at least 21 days before your term expires. However, you can usually receive a renewal offer with the best available rate 30 days in advance.
Be Ready to Make a Decision
After reviewing all options, take action. Weigh your financial goals, the terms of your mortgage, and the renewal offer from your current lender. Once you’re ready, choose the best option for your needs.
Maximize Your Leverage
Do your research to determine which lenders offer the best rates and terms. Knowing your options will give you the confidence to negotiate the best deal.
Frequently Asked Questions
Along with your other financial goals, you should list what you want in a mortgage product. To start, ask yourself a few questions:
- Does your monthly budget allow you to increase the amount of your mortgage payment? (If so, review the monthly prepayment options in the terms and conditions.)
- Will you receive any bonuses or inheritances that you could put towards your mortgage? (If so, you’ll also want to look at the lump sum prepayment options.)
- Will you have the option to pay off your mortgage entirely in this next term? (If that is the case, consider the prepayment penalties with fixed vs. variable rate mortgages.)
- Will you want to borrow more money from your lender during this next term? (If that is the case, you will again want to consider the prepayment penalties involved in a refinance or look at collateral mortgages instead.)
- Will you sell your home and/or move in the next 5 years? (In that case, you may need a portable or assumable mortgage.)
First-time Canadian homebuyers can access several financial benefits, including the Home Buyers’ Plan (HBP), GST/HST rebate on new housing, First-Time Home Buyers’ Tax Credit, and provincial land transfer tax rebates.
“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 to 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.