What you need to know before you renew your mortgage could save you thousands of dollars. Is your mortgage on your home or other properties maturing this year or next?
Typically you will receive your mortgage renewal notice from your current lender 1-4 months in advance of the renewal date. Sometimes you may receive an offer for early renewal. Either way, always reach out to your independent mortgage broker to find out your options and what you need to know before your renew your mortgage.
With the new mortgage rules in effect in October/November 2016 and subsequent changes January 1st 2018 it is more important than ever to know your options before you sign a renewal.
Renewing your mortgage
Did you know…?
If your current mortgage funded before October 2016 regardless if you were a high ratio borrower or conventional borrower the old rules for qualifying still apply
If you want to renew your mortgage at best rates you can transfer that mortgage to another lender without qualifying under the new rules
If you have any fees for transferring the mortgage they are covered by the new lender
Lenders are currently offering high renewal rates as they know 65%+ of borrowers will simply sign without doing any homework
Lenders are currently offering lower rates only after clients decline their first offer. Doesn’t seem fair does it?
Mortgage brokers have access to lots of great renewal programs from the banks, mortgage companies and credit unions.
I recently saved one client $4000 in interest and another client almost $2500. If you roll that savings back into your mortgage payments you could shave years off your mortgage.
Be informed before your mortgage renewal. Consult with an independent mortgage broker to review your financing needs for all of your properties and to set a plan well in advance of any mortgage renewal. If you are looking to make any large purchases such as investments, real estate, an automobile— know your options and the impact of these purchases on your financial situation.
Please share this information with anyone you know who is renewing their mortgage this year or even next year.