Your mortgage renewal is a valuable opportunity

It’s a chance to potentially improve on your rate options, but also to get a mortgage product that might better fit your needs. Renewing your mortgage is a significant financial decision that requires careful consideration. While it may be tempting to simply sign the renewal offer from your existing lender, taking the time to review your options and negotiate can potentially save you thousands of dollars.

Don’t simply sign the mortgage renewal from your existing lender

When you receive a renewal notice from your current lender, don’t simply sign it without knowing all your options. If you do so, you could be paying a higher rate than you need to, and end up with a mortgage that might not be best suited to your requirements.

Often, by the time your mortgage comes up for renewal, you might be in a different financial position than when you first obtained it. As our financial and life circumstances change, so does the mortgage product that is best for our needs and goals. For example, you may wish to access your home’s equity to consolidate other debts (especially high interest credit card debt), or perhaps help pay for a renovation or investment property.

5 essential steps to take before renewing your mortgage:

1. Review your mortgage renewal offer

Before you consider renewing your mortgage, review your current renewal offer. Pay close attention to the interest rate, term length, and any prepayment penalties or fees. Understanding your current mortgage will help you evaluate any renewal offers.

2. Contact a broker to help you shop around

Take the time to shop around and compare rates from other lenders. Even a slightly lower interest rate can result in significant savings over the life of your mortgage. A mortgage broker can help you navigate the mortgage renewal process and find the best mortgage product for your needs. They have access to a wide range of lenders or can help you negotiate with your existing lender.

3. Consider your financial goals

Do you want to pay off your mortgage faster, or do you need lower monthly payments? Understanding your goals will help you choose the right mortgage product for your needs.

4. Think about debt consolidation

If you have other debts, such as high interest credit card debt or personal loans, consider whether it makes sense to consolidate them into your mortgage. This can help you streamline your debt payments and potentially lower your overall interest costs.

5. Evaluate different mortgage products

Depending on your financial situation, you may need a different mortgage product, such as a home equity line of credit (HELOC), to meet your needs. A mortgage broker can help you determine whether a different product would be more suitable for you.

In summary:

So at renewal time, make sure to review your options thoroughly. We can speak about any concerns you may have about interest rate trends, discuss your mortgage choices, and help you with a customized mortgage strategy. This way you can ensure that you’re making the best decision for your financial future. Feel free to contact me for a free consultation!



Photo credit: icetrayimages794410 for vecteezy.com