When your mortgage term is up for renewal you should never renew with your current lender until exploring your other options. Doing so could end up costing you thousands of dollars with higher mortgage payments and less attractive mortgage features.
When you have an upcoming mortgage renewal we’ll consider the following options.
1. Shop around for a better offer.
As a licensed Mortgage Broker I’ll compare current rates from all lenders and try to secure a better rate and a product with better features than what you’ve been offered. Banks often give posted rates at renewal time instead of their discounted rates. I can usually secure a better rate than you’re being offered by your current lender.
2. Refinancing.
If you would like to access some of the equity in your property for a renovation, big purchase, or down payment on a second home this is ther perfect time to do that! We can look at refinancing to tap into the equity you’ve built up while avoiding paying pre-payment penalties that you’d pay if refinancing mid-term.
3. Switching to a shorter or longer amortization.
We can look at switching to a shorter amortization to pay off your mortgage faster, or a longer one to lower your monthly payments. In this current environment of higher interest rates extending your amortization would help to offset the increased monthly payments.
4. Making prepayments.
Now is a great time to make prepayments on your mortgage to pay it off faster, save on interest and lower payments on the new term.
Be sure to contact me to explore your options and help to save money on your mortgage renewal!