Let’s Talk Mortgage Renewals

Your mortgage is up for renewal for the first, second, or even fifth time!

So you’ve lived in your home for a few years now, and you’re still loving it. Your mortgage is up for renewal and you have no intention to move in the foreseeable future. What now? Almost 60% of borrowers simply sign and send back their renewal without checking if what they’re being offered is the best rate available.  Lenders tend to offer higher rates on renewals, versus the rates offered to a brand new client. They are hoping that the ease of renewing with them will deter you from checking out your options elsewhere.  However, shopping around for a better rate is not as tough as it sounds. This is where I come in!  Let’s say your mortgage balance is $300,000.  The difference in interest cost over 5 years when there’s even a 0.35% gap in rate offered is upwards of $5000.  That’s a ton of money!  

What about renewing your mortgage when you might be moving?

Now let’s say you’re a homeowner that does have plans to move in the future, but this move doesn’t line up exactly with your renewal date.  Ensuring that you’re in a product that’s flexible enough to allow for this future move is hugely important.  You need to have a conversation about what you can do, and the costs associated with changing life plans. This is why having me look at your mortgage options at renewal is a huge benefit. Lenders are very varied in your ability to transfer your mortgage to a new home, and the way they calculate your penalty in the instance that transferring your mortgage isn’t an option, so we need to plan for this. 

I’ll shop around for you, but your existing bank may have the best rate and product for you. In this instance, I’ll simply submit the renewal! 

Can I renew my mortgage early?

Beyond renewing your mortgage, you also have the option to transfer your mortgage mid way through your mortgage term.Transfering to another lender is generally done to get a better rate. This can be done any time, but will likely have penalties associated with breaking the mortgage if the term is not complete. This is why it’s important to have someone do the math. I can make sure the cost of this change is going to save you enough bucks to make this worth your while.

If your mortgage is coming up for renewal any time over the next 6 months, please reach out for a no obligation options review!