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Renewing Your Mortgage

This may be the year you get that renewal letter in the mail. Many of you may sign the new renewal rate because it’s easy, and the idea of switching to another lender may be too onerous. You are busy with work and family and don’t have the time to research   to see if there may be a better deal for you. 
When you’ve done your homework before purchasing a home, it only makes sense to do as much research at renewal time as you can. 
Quite often the renewal rate offered to you by your lender is higher than the market average.

There may also be material changes in your household. Perhaps you’ve started a family, or one of you has received a promotion. These life-changes are another good time to contact a mortgage broker to review your financial situation and see what makes sense for you to do.

The downside to signing the renewal letter is that you are giving up your ability to negotiate.
If a competitor offers you a better rate and you want to accept, you will be subject to the stress test to re-qualify for your mortgage.

As your mortgage broker, I can help determine the competitiveness of your renewal offer and passing the stress test.

I'll provide you with all the various options so you make an informed decision.

Tips for renewing and making sure you get the best mortgage product:

  • Do not sign the renewal letter that is automatically sent to you in advance of your renewal date. Always speak to someone and negotiate.
  • Consider the financial institution's reputation, flexibility regarding pre-payments and rates when deciding on a lender. The stress test can make it harder to change lenders so best to pick one you are comfortable remaining with long term.
  • Your credit score is important. Make your payments on time and try to avoid excess debt as the rate you will be offered is risk based. 
  • If you need a loan, delay applying for it until after your mortgage renews. That loan could be the difference between passing or failing the stress test.
  • If you have a loan and are planning to pay it off, do so before you renew the mortgage (ideally a couple of months before). By eliminating that debt, you will be perceived as less risky and will likely be offered a better rate.
  • The posted rate is usually not the best. Often, depending on your lender, you'll get the posted rate, not the discounted rate, as a renewal rate. A report by Mortgage Professionals Canada found that renewers working with a mortgage professional saved approx. 2 points below posted rates. That can translate into thousands of dollars in savings over the course of your mortgage.
  • Do your homework. Allow me to shop around to get the best deal, tailored to your particular situation. If you decide to switch lenders, there are no penalties at renewal time.
  • It's not always about interest rate. Don't fixate on rate. There are other options that may appeal to you such as changes to amortizations or changes to the rate type.
  • Why a mortgage broker? Most surveys find that brokers can get you a better rate because of their relationships with multiple lenders. 

Together we can review your options and create a mortgage financing plan that works for you.

Let's Talk!
902.489.4898
902.835.3407
Email: glenestabrooks@mortgagegroup.com

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Residential & Commercial - 30 Years Experience - Providing one-stop convenience & impartial advice - Trusted Service. By shopping wisely with multiple lenders, I can help you find the mortgage that best suits your financial needs. *Note: Fill in as much as possible, comment section available to provide details. All information is confidential and protected.