What You Need to Know about Mortgage Renewals
Whether your mortgage term is coming to an end soon, or that day is farther off in the future, as a homeowner you should be acquainted with what to do (and what not to do) at renewal time. The key is to make sure you know all of your options.
Some mortgage rates have been trending upward this year, which makes getting the best deal when renewing all the more important.
Think twice when you receive your renewal notice. Don't simply sign the renewal form sent by your current lender. If you do so, you could be paying a higher rate, and end up with a mortgage that might not be best suited to your needs.
Get a rate hold. Before a mortgage comes up for renewal, most lenders in Canada will extend a rate hold for 30 to 60 days. However, a mortgage consultant will most likely be able to arrange a 90- to 120-day rate hold for you, providing a longer rate guarantee. If fixed mortgage rates rise during the period of your rate hold, you'll be protected; if they fall, you'll have access to the lower rate.
Shop around. This is where a mortgage consultant is indispensable. He or she can "shop" your application to an extensive line-up of lenders who offer a wide range of mortgage options.
Make sure you get your questions answered. Your mortgage consultant can speak to any concerns you may have about interest rate trends and what to do as your mortgage renewal approaches.
Think in terms of a mortgage strategy. By the time your mortgage comes up for renewal, you are most likely in a different financial position than when you first obtained the loan. As our financial and life circumstances change, so does the mortgage that is best for our needs and goals.
Consider your mortgage renewal as an opportunity ... to get the most from your financing. For example, you may wish to consolidate other debts using your home equity in order to reduce monthly payments. With a mortgage professional on your side, you'll get expert advice on a customized mortgage strategy to ensure you are taking full advantage of the many mortgage options on the market in Canada, and you'll also get a competitive interest rate.
Independent Mortgage Advice Is Yours
To meet your needs, or those of friends & family,
I can...
- Shop the market to find you the best rates and mortgage products, whether you are purchasing a home, refinancing or renewing your mortgage.
- Counsel you on credit and mortgage qualifications.
- Simplify the financing process.
Paula Siemens
Mortgage Consultant
Phone: 604-351-7438
Fax: 604-648-9106
Email: psiemens@direct.ca
Web: www.yourbcmortgagebroker.com
902-777 West Broadway Ave., Vancouver, BC V5Z 4J7