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Mortgage Renewal

Mortgage Renewal is a great time to look at the many innovative options and competitive rates available. The mortgage environment is always changing – if you’re in the last year of your mortgage, it’s not too early to talk to a Mortgage Professional about what the next few months will bring.

When a term is coming to a close, most banks will send a mortgage renewal notice in the mail usually one to two months prior to the term expiration. Almost 60 percent of people renewing their mortgage, sign this renewal without researching what the competition has to offer

Best Renewal Rate for Your Mortgage

With the wide assortment of options and features available today for a mortgage renewal, shopping around takes significant time and effort. The mortgage process can be intimidating to many Canadian homebuyers and it’s wise to begin with some advice from a professional.

To find the right mortgage for you is our business. We know which lenders have the best rates and we negotiate with multiple lenders at one time. We do all the paperwork.

Your Financial Goals

Your financial goals at the beginning of your current mortgage term may no longer match up with your goals today. You could have received a substantial raise at work, lost some income or even retired. If there’s any chance you’ll need to move in the next 5 years that should be factored into your decision. Whatever your needs are, make sure you consider them when choosing a mortgage rate, term and product.

Your Mortgage Renewal Needs

To make a list of what you’re looking for in a mortgage renewal is always a good idea. To start, ask yourself a few questions:

  • Does your monthly budget have room for you to increase your mortgage payment amount?
  • Do you think you’ll have the option to pay off your mortgage entirely, in this next term?
  • Do you think you will want to borrow more money from your lender during this next term?
  • Is there any chance you’ll be selling your home and/or moving in the next 5 years?

Understanding the Mortgage Basics

From the security of a fixed rate mortgage to the flexibility of a variable rate mortgage, you have several choices when it comes to interest rates.

Fixed Mortgage Rates

The interest rate for a fixed rate mortgage is locked in for the full term of the mortgage. Payments are set in advance for the term, providing you with the security of knowing precisely how much your payments will be throughout the entire term. Fixed rate mortgages can be open (may be paid off at any time without breakage costs) or closed (breakage costs apply if paid off prior to maturity).

Variable Mortgage Rates

With a variable rate mortgage, mortgage payments are set for the term, even though interest rates may fluctuate during that time. If interest rates go down, more of the payment is applied to reduce the principal; if rates go up, more of the payment is applied to payment of interest. Variable rate mortgages may be open or closed.

A variable rate mortgage provides you with the flexibility to take advantage of falling interest rates and to convert to a fixed rate mortgage at any time.