Mortgage Renewal Canada
Before You Auto-Renew…Read This
Once you have a mortgage, you normally settle into a pattern of payment. Most Canadians deal with the mortgage renewal process in much the same way.
In fact, 85% of Canadians auto renew with their lender just because it’s simple. This means 85% of Canadians might be paying too much. Don’t just settle for what the bank is willing to offer, know your options.
If you want to ensure you get the best rate, consider these tips:
- Do your research: When you’re looking for a renewal rate, it’s best to do broad research on the current rates, and then narrow your search to financial lenders you feel comfortable doing business with. You can opt to have a mortgage broker do this research for you, for free.
- Consider a pre-approval: By obtaining a pre-approval, you can guarantee your rate up to 120 days before your current mortgage comes due. This guarantee protects you in case rates go up before your mortgage maturity date, which can save you thousands of dollars down the road.
- Use online mortgage tools: A renewal calculator can give you an accurate idea of what your financial commitment will be. If you can afford to do so consider bi-weekly payments, instead of following a monthly schedule, to save on mortgage interest.
The Mortgage Renewal Process Made Easy
Your mortgage may well be your most significant investment. The mortgage renewal process is therefore quite important – it gives you an opportunity to revisit your financial commitment.
Most Canadians opt for a quick renewal process, choosing to have a friendly negotiation meeting with their bank, and accept what they are offered. This is what most lenders are counting on to happen; after all, that method provides them with extra profit.
A mortgage broker can answer your questions and find a mortgage product that works for your personal budget. More importantly, your broker will deal with the difficult negotiating process on your behalf.
Ready to get started? Try our quick, secure, online application. Our experienced mortgage team will begin the approval process, right away on your behalf.
Don’t Just Renew… Save Money Too!
Brokers For Life has a network of over 30 top banks and lenders, across Canada. Our team can apprise you of the best possible current rates and provide ideas on how to save money during the renewal process.
In the wake of the economic crisis of 2008-2009, interest rates hit an all-time low to encourage homeowners to apply for a mortgage. Interest rates remain low today and, with the help of a mortgage associate, you can negotiate low enough rates that make an impact on your budget and make your mortgage product just that much more affordable.
You may also be able to save money by switching at renewal time, as lenders are often willing to provide a better rate in order to acquire existing mortgage clients. A mortgage broker can be quite useful in this situation, to help steer the process and ensure you don’t incur unnecessary fees.