Mortgage Renewals are Inevitable – Start Planning Today

The minute you close your mortgage, realize that whether it is 6 months from now or 5+ years – the term will come to an end and you will have to plan for the renewal.

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Regardless of the amortization period, mortgages in Canada come up for renewal on shorter terms. So what exactly does a mortgage renewal entail?

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The long and short: You will need to renew your mortgage for the amount outstanding on the mortgage for a new term.

So understand when your term comes up for renewal and mark the date four months in advance in your calendar to ensure you have some time to plan. Most lenders will send renewal letters 6-8 months in advance, as it is usually in their best interest to retain you and continue to make money off the interest payments from your mortgage. In many cases you may find the rate on your mortgage renewal to be higher than what you are currently paying. You may ask yourself why and the answer is simple, some financial institutions know that many people will just sign the renewal without learning about their options or if a more favourable mortgage is available. Its hard to believe that this approach is used as it is clearly not in the best interest of the mortgage holder.

An Opportunity, but Potentially a Challenge

Your pending mortgage renewal gives you the opportunity to look for more competitive rates, terms and conditions with other financial institutions. Most people do not realize that there are usually no costs to the borrower for moving their mortgage from one financial institution to another unless there was some sort of special condition written into their original terms.

This means we can help you get a more competitive rates, terms and favourable conditions through our network of nearly three dozen lenders. We have the mortgage renewal process figured out and can make it happen for you without hassle, issues or stress. This level of service has given us a long list of happy clients in Oakville that know in most cases our services to you are free as we are compensated by lenders but work for you “our valued clients”.

A mortgage renewal can also potentially be a challenge when your financial situation is dramatically different from when you first closed your existing mortgage. If you have consistently made your mortgage payments and your credit score has not moved too much – the existing lender will not go deep into looking at your debt ratios. However, if the credit check finds bad credit, it is a possibility that your lender may deny you a renewal and in particular if you are self employed.

Prepare Your Mortgage Renewal With A Licensed Professional

With our team of licensed mortgage professionals, we will help you pull your credit score from Equifax and or TransUnion months in advance to understand your financial situation. We have a well-developed framework to get your mortgage renewal ready. We will start preparing options with different lenders where the terms and rates are more favourable to help ensure that you stay in your home.

Oakville is an interesting market regarding mortgage renewals because we find that many clients have large portions of equity built into older homes that are well on their way to be paid off. However, on the flip side, relatively new homeowners are usually dealing with loans in excess of $600,000. This means that a fair amount of scrutiny is applied on mortgage renewals. What may sound like a panic situation is not if you are working with trusted mortgage advisors to guide you through it. Don’t delay and speak with us today regarding the right path for renewing your next mortgage.

Let’s Get Started With Your Mortgage Renewal Today

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