Mortgage Renewal

Mortgage Broker in Waterloo, ON

Mortgage Renewal

Consumers are much more informed these days about mortgages and mortgage products, and are highly engaged, especially millennials who are comfortable searching the Internet for information and rates.

Because consumers are highly engaged, they are more confident about their mortgage decisions. Still, with all that research, more than half of those looking for a mortgage contacted a mortgage broker to get further clarification.

This may be the year you get that renewal letter in the mail. Many of you may sign the new renewal rate because it's easy, and the idea of switching to another lender may be too onerous. You are busy with work and family and don't have the time to research to see if there may be a better deal for you.

When you've done your homework before purchasing a home, it only makes sense to do as much research at renewal time as you can. Quite often the renewal rate offered to you by your lender is higher than the market average.

There may also be material changes in your household. Perhaps you've started a family, or one of you has received a promotion. These life -changes are another good time to contact a mortgage broker to review your financial situation and see what makes sense for you to do.

Here are some tips to make sure you're getting the best mortgage product:

GET GOING EARLY.

Start the discussion four to six months ahead of renewal time. Most lenders will guarantee a discounted rate for four months, but you will typically receive your renewal agreement 30 days ahead of your maturity date.

THE POSTED RATE IS USUALLY NOT THE BEST.

Often, depending on your lender, you'll get the posted rate, not the discounted rate, as a renewal rate. A report by Mortgage Professionals Canada found that renewers working with a mortgage professional saved approximately 2 points below posted rates. That can translate into thousands of dollars in savings.

DO YOUR HOMEWORK.

Shop around to get the best deal, tailored to your particular situation. If you decide to switch lenders, there are no penalties at renewal time.

IT'S NOT ALWAYS ABOUT INTEREST RATE.

Don't fixate on a rate. Other options may appeal to you such as changes to amortizations or modifications to the rate type.

WHY A MORTGAGE BROKER?

Most surveys find that brokers can get you a better rate because of their relationships with multiple lenders.

A broker can give you independent advice because they are not committed to one lender. A broker can also save you time with one -stop shopping. Also, there's no cost to you.

The bottom line is that research is equally as crucial at renewal time as it is when purchasing your new home. Please don't leave it until the last minute.

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