If you’re like most Canadians, your mortgage is your biggest monthly expense. 43% of mortgages in Canada will be renewing this year 2018. That makes it imperative we spend some time making sure people are aware of their options. It pays to plan ahead and consider these 5 key mortgage renewal tips:
- Research the renewal letter terms before signing and returning to the bank. Its an expensive mistake that banks count on at renewal that could cost you thousands of dollars over your renewal term
- Consider speaking with a mortgage specialist first. With a single application and credit review, mortgage brokers can navigate the market on your behalf, assessing solutions from multiple lenders to provide a range of options
- Don’t accept the banks posted rates. If you prefer to stay with your bank, do your homework, but be sure to start at least four months in advance to ensure you have enough time. Find out what other lenders are offering so you can negotiate. Focus on the interest rate, amortization, fixed or variable type of rate and the flexibility of the payment schedule. Note that if you choose to renew your mortgage early at the rate your bank has quoted, you lose any opportunity to renew the mortgage at a lower rate with another lender
- Check your credit. Mortgage lenders rely on your credit score and the details of your credit when reviewing your mortgage application. The difference between a good and a not-so-good credit score can affect your ability to get the lowest mortgage rates
- Renovate or Consolidate debt. At renewal there is no penalties to make changes to your mortgage which is great opportunity if you are looking accessing your saved equity within your home