Mortgage Renewal
An incredible 5YR fixed at 3.98% (insured) is available for qualified clients - this is 0.5% lower than rates currently offered by the major banks!Contact us to get started today!
What is a Mortgage Renewal?
Mortgage renewals occur when the term (the period of time the mortgage rate was set for) expires and the mortgage ‘matures’. Typically the lender that your mortgage is currently placed with sends a renewal letter to you 1-2 months prior to expiry of the term. The lender will outline what their offer is to you to keep the mortgage placed with them. On average, 60% of borrowers will accept this offer without ever shopping around for more favourable terms or rate.
What are the advantages to shopping around?
Lenders know that it is easier and less time consuming to accept the terms outlined in their renewal offer. However, a little investment of your time can pay off huge with better mortgage terms and rate. More competition for your business means lenders want to give you their best offer so you choose them to do business with.
What are the benefits to speaking with a Mortgage Broker?
Mortgage brokers are financial experts that work on your behalf. We have access to a great number of different lenders and work to find the one that best suits your needs. And best of all, there is no cost to use us.
Ok, I'm interested, how much could I potentially save?
Using an example of $400,000 as the remaining mortgage amount, 20 years remaining amortization – a difference of only 0.20% means you could save $3,688.51 over the next five years. A difference of 0.40% is $7.369.08 in savings! In addition, a difference in mortgage pre-payment penalties (which vary from lender to lender and make up a very important part of your mortgage terms) could end up saving you more than $10,000 if you need to sell or refinance part way through the term.
Is there an upfront cost to switching lenders when my mortgage matures?
There is no early pre-payment penalty incurred when a mortgage matures. Frequently, the new lender will cover the cost of any legal fees to switch the mortgage.
I haven't received a renewal offer from my current lender or I don't know when my mortgage matures.
It is good practice to begin planning on your mortgage renewal as early as possible. Don’t wait until the last minute to talk to a mortgage professional, today’s rates can be locked in up to 6 months in advance of your renewal date. Additionally, rates will be monitored all the way up until the closing date of your transaction to ensure you get the best possible offer!
Is there a way to lower my payment or access equity in my property?
Since there is no penalty associated with refinancing at the end of your term, there is no better time to look at options such as lowering your monthly payment, accessing equity to pay off debt or adding a Home Equity Line of Credit (HELOC). As everyone’s finances are unique, we can examine your current situation, work with you to understand your financial goals and then recommend personalized solutions to help you achieve them!
