Are You Planning On Renewing Your Mortgage Now?

 

Due to this sudden COVID-19 pandemic, a lot has changed in the way we do things including renewing a mortgage. It is all about making smart decisions with our hard-earned money and looking for products and strategies that guarantee us the best possible option. Since rates are continuously fluctuating during these times, it’s always best to shop around before arriving at a conclusion. There are a variety of resources today that can help you compare different mortgage renewal products and choose the one that best suits your financial lifestyle.

DO YOU PLAN TO GO FOR AN EARLY RENEWAL?

The fact is that there are plenty of mortgage payment deferral plans being offered to Canadian homeowners by the government to help postpone their payments for a selected period of time. A regular mortgage renewal does not usually involve a lot of paperwork but in case you opt for early renewal to take advantage of low mortgage rates being offered by lenders then your current employment situation is re-verified. That’s why it is best not to switch or quit your job during this time, especially if you are indulging in a mortgage renewal process.

SEARCHING FOR THE RIGHT LENDER

Today, there are a variety of ways to find the best refinancing rates and one needs to shop around to get the best possible deal. Sometimes you may also need to call a few lenders who may not have listed themselves but offer a lower rate of interest. It may not always necessary that you find the best mortgage renewal rate online whether it is fixed or variable – the best way is outright in-depth research before arriving to any conclusion.

WHAT ARE YOUR BEST RENEWAL OPTIONS?

Ideally, any lender would permit you to renew your mortgage without any prepayment charges, anywhere between 2 to 4 months in advance. In such a situation borrowers have the option to compare through multiple lending rates and bargain on something that suits them best. The good part about continuing with the same lender is that you avoid all the hassles related to paperwork during the mortgage renewal process. Other than that, there is always a good scope of the bargain to ensure that you pay lower than what you have paid so far.

BE A CONFIDENT HOMEOWNER IN 2020

If your mortgage renewal is around the corner in the year 2020, then my best piece of advice would be to submit your renewal application at the earliest. Since fixed rates are climbing at the moment, you would be able to make benefits from the rate cuts being proposed by the Canadian government that further guarantees lower fixed term rates.

A Quick Guide to Renewing a Mortgage

Your current lender must send a statement of mortgage renewal to you 21 days before your loan term ends. But they might send you a renewal offer (through the mail) to share their lowest posted rate that’s good for 30 days. This offer will protect you from any possible rate increase during this 30-day period. You may look around and compare other lenders’ mortgage rates to know whether the offered rate is the best for you or not? If it is not, you should negotiate with your current lender to make it at least equal to what other lenders are offering in the market or even less than that. But many times you will find it difficult to convince the lender to negotiate the mortgage rate. So, in the last 30 days, make sure you meet a mortgage broker and talk about the offers other lenders have for you.

Renewing a mortgage agreement is a tricky job and you need to be cautious while doing so. Otherwise, you may soon find yourself stuck in the vicious circle of multiple mortgage renewal processes in the years to come. Things may have possibly changed a lot since you signed up for your last mortgage contract. There could be several reasons why you should consider changing your lender now. Maybe your current mortgage isn’t the best for your lifestyle, future goals, financial situations, etc.

Hence, before you proceed with renewing a mortgage agreement, don’t forget to do some good research, compare the options available to you, and, best of all, do a self-analysis and self-assessment. What all you need to consider before entering another mortgage renewal process? The first and most important thing you need to think about is “has your income/earning changed?” The other things you need to pay attention to include “your expenses – to what extent they have changed”, “your financial risk-taking capabilities”, “your family and number of dependents,” etc.

Another important thing you need to do before renewing a mortgage agreement is examining your goals. Are you planning a major repair or renovation of your home soon? Are you planning a move soon? Are you willing to pay a lump-sum on your mortgage?

Self-assessment and goals analysis will help you choose the mortgage best that suits your life and simplifies loan repayment for you. And, remember your lender starts working on the mortgage renewal process months before your mortgage maturity date arrives, so why are you sitting relaxed and oblivion? Look around and talk to the experts to get your mortgage loan at the best rates! Call Rateguru to discuss your mortgage renewal needs now!