Are you going to renew your mortgage term? If that’s a yes, you are whispering, then it is not something you should be afraid of. First, you should know that you are not the only one – around 36.3% of Canadian homeowners, renew their mortgage term at the end of their first mortgage term.
In simple words, mortgage renewal is renewing your outstanding mortgage balance into another term. But do you know there is another reason behind this renewal thing? People usually opt for this option in the hope to get lower mortgage rates so that they can quickly settle off their mortgage.
If you to get a better mortgage renewed term at lower mortgage rates Toronto, then you must read this article till the end. In this discussion, we have shared some expert mortgage renewal tips that might help you get better rates and terms.
1. List Down Your Current Financial Goals:
It is essential to consider and list down all your financial goals and needs before opting for the mortgage renewal option. The first thing that you need to consider is whether you are going to stay in your house for the whole next term? Other financial goals include how the inheritance or extra money could impact your mortgage prepayment options. Another financial goal to consider is the choice between the HELOC (to access equity) or refinance the mortgage. All these decisions will help you choose the lender and product as per your financial needs.
2. Ascertain The Current Mortgage Rates:
Just like the tax rates, mortgage rates also keep changing. Unless you are in the real-estate business, it is tough to determine the price movement in the rates. And as one of the reasons why people renew their mortgage term is to get a lower mortgage, it is necessary to shop for the rates. How is this possible? Well, the answer to that is quite simple – you need to approach a good mortgage broker. Mortgage brokers have access to all the information on the different lenders, their products as well as the minimum and maximum rates those lenders are willing to offer. Another benefit of seeking help from the broker is that they pull out your credit report and then provide a list of the lenders as per your credit score. This way, you would get the best mortgage rates without going to one lender to another.
3. Never Switch Lenders At the Eleventh Hour:
If you want to switch your lender by the end of your mortgage term, then we recommend that you do it as soon as possible. Don’t wait for the term to end. It is because it takes time to fill out and submit the applications as its the same as applying for the time. Even with the help of a mortgage broker, it takes a minimum of 1 week to submit your application. Therefore, complete your documentation and file for the application before the end of the term.