Your home is the biggest investment you will make, and it is where your family will spend the majority of their time. It can also become expensive, and you want to make sure you’re getting the best rates and options on your mortgage, as it’s something you’ll be making payments on for a long time. When your mortgage is due for renewal, you might think you just need to sign the paperwork and accept what your lender is giving you but that is not necessarily correct. Renewal is a time to make sure you’re getting what’s important to you, and you’re saving as much money as you can. Here are a few tips for mortgage renewal.
Think about your financial goals
Before you just sign the paperwork, think about what you want out of the next term of your mortgage and onwards. For example, if your current mortgage is for a 5-year term then your renewal is probably going to be for 5 years too. Do you plan to stay in your current home for that long, or do you know you’re probably going to move?
If you do not think you’ll be staying for 5 years, then you might want a shorter-term product.
Ask for a better rate
When your current lender sends out the mortgage renewal documents, they will offer you the posted rate with it – but this isn’t their lowest possible rate. If you’re thinking that you can probably get a better rate, then ask for one. Call them and ask if you can get a better rate than what they offered – there’s no harm in doing so.
Start shopping around
If your current lender wasn’t willing to work with you and negotiate your rate, start shopping around. Renewal means you can move your mortgage to another lender – you don’t have to stay with the same lender. Working with a mortgage broker will give you access to dozens of lenders and it can help you understand where your current offer stands in terms of what else is available to you.
Get a rate hold
When you’re shopping around for a mortgage, you will probably have a lot of information coming at you and you might not be ready to make a decision – and that’s ok. When you’re shopping around if you get a good rate and you want some time to consider you can always ask for a rate hold. This will guarantee your rate for up to 120 days and could save you a lot of money if rates increase in that time.
Going through a mortgage renewal can be difficult and confusing, but it doesn’t have to be. Working with our mortgage broker can really help you save a lot of money and get the very best rate for your mortgage.