Don’t Automatically Renew Your Mortgage

mortgage renewalsWhen your mortgage comes up for renewal, you may not know that you can have another lender take over your mortgage but you can! You should never renew your mortgage just because they sent you the form; you want to negotiate for the best rate, saving you thousands of dollars in interest over your next term. Let us as Toronto mortgage brokers help you get the best rate for you! Here we’re going tot alk about mortgage renewal and how it works; we’ll also go over how you can use this to get the most out of your mortgage, so let’s get started.

What is Mortgage Renewal?

If you take out a mortgage for say, $100,000, over a 10 year period but you’re not able to pay it in full yet, you may be offered the option to renew your mortgage. If you choose not to renew your mortgage you could be on the hook for the portion of the loan you still haven’t paid. Since most of us don’t have banks in our pockets, we’ll almost always renew the mortgage.

The thing about mortgage renewal is that they can revise the terms; this means that if you got a great deal at the beginning of your mortgage, you could wind up paying double the interest when you sign on for this next period. This is why you need us! As experienced Toronto mortgage brokers we’ll be able to help you understand the terms they’re offering. If they’re less than favourable, we can help you find another lender to get you the best mortgage possible. Different mortgage lenders may offer a better deal to you; you’ll be able to decide between your existing lender and choosing a new one. Always remember, you have a choice when it comes to mortgage renewal.

Is Mortgage Renewal the Right Choice for You?

Unless you can pay the outstanding portion of your mortgage… it might have to be the choice for you. But you can transfer your debt to another lender how is offering more favourable terms. Whatever you decide to do, make sure that you’re getting an equal to better deal than you have right now; there’s no point in switching lenders unless it’s going to bring you a benefit. We’ll help you find the right lender who can offer you financing and flexibility, helping you pay down your mortgage faster.

Let Us Help You!

If you’re not sure if you should renew with your current lender or if you should find someone better, let us help! We’re experienced Toronto mortgage brokers that can help you find the financing you need at terms you can live with. Bad credit, self employment and other unique conditions should never affect your chances for getting decent terms for your mortgage renewal. We know all the different lenders in the area that handle this type of financing and can help you get the right one for your specific needs. Contact us today and see what we can do for you.

What is Mortgage Renewal?

mortgage renewalMortgage renewal is a hot topic for Toronto mortgage brokers, but what is it? When your mortgage runs out, you’ll have one of two choices: extend/“renew” your mortgage, or to pay up in full. Since most of us can’t get that much money up on the spot (which is why most of us got a Canadian mortgage in the first place) we have to renew. What you may not know is that you don’t have to renew with your present lender; you can make them renegotiate the terms of your agreement or you can find another lender altogether. Here we’re going to go over everything you need to know about mortgage renewal.

What is the Difference Between Terms and Amortization?

Most people make the mistake of not knowing the difference between mortgage terms and amortization. You’ll often have a 25 year amortization period (it was 30 but the mortgage rules have changed to a max of 25 years), but this doesn’t mean you have 25 years to pay off your loan in full; this is where mortgage terms come into play. Say you have a 25 year period for your mortgage but you have a 4 year (common) mortgage term. When that 4 years is over, you could end up with much higher interest rates or you could be on the hook for the full amount. This is when you need to speak with one of our Toronto mortgage brokers.

You probably already have a mortgage, and there’s little you can do about that now. But when it comes up for renewal, you’ll be able to renegotiate or find a better mortgage lender who can help you get the right Canadian mortgage. You can’t do this without a Toronto mortgage broker, so let us help you find the right mortgage for you!

Save Money with Renewal

Saving money with mortgage renewal means understanding how the process works. The difference between terms and amortization is a good example, but you’ll also need to know about penalties too. Penalties like pre-payment (paying EARLY) and late payment penalties will affect how much interest you get over the life of your loan. Caps on VRM or ARM (variable/adjustable rate mortgages) like lifetime caps and annual caps will keep your interest rates low and will help you know exactly how high or low things are going to wind up being.

Just because you get a mortgage renewal letter in the mail doesn’t mean you have to sign it. Talk to one of our Toronto mortgage brokers and make sure you’re getting the deal that’s best for you. Just because a renewal offers a 0% introductory rate doesn’t mean it will stay that way for long, and you’ll want to know for sure that you’re getting a great rate that sticks. We’ll be able to help you find the right mortgage renewal solution for your needs, at a price that’s right and with terms that fit your lifestyle. 

Save Money With Mortgage Renewal

mortgage renewalsIf you want to turn your mortgage around, mortgage renewal can really save you money! Don’t automatically sign the form and turn it in when you get it, consider what they’re offering you. Are you going to get a better interest rate this time, or are you getting more or less the same deal? With interest rates right now for Canadian mortgages at the lowest they’ve been and probably will be for decades, it pays to research your options. Here we’re going tot alk about how we as Toronto mortgage brokers can help you get a great rate on your mortgage and what you need to know.

What is Mortgage Renewal?

When you sign on for a mortgage, you are given a mortgage “term”; this could be as short as 2 to 3 years, or it could be as long as 30 years. You’ll have this long to pay off your mortgage. If you can’t pay it in full by the end of the term, you will be sent a mortgage renewal form. You can pay up, renew with this lender or go out and find another lender to hold your mortgage notes. You can also renew your mortgage even when it’s not time to do so. You’ll want to work with one of our mortgage brokers to make sure you’re getting the best deal.

Don’t Wait for the Mandatory Renewal

Many people don’t know that they can renew their mortgage before the lender asks them to. You always have the choice and it can pay big to keep an eye on trends like the national interest rate and how the economy is doing to see what kind of deal you can get. The economy is great right now; interest rates are low and virtually anyone can buy a house or refinance their mortgage. If you’d like to know what options you have for mortgage renewal, let us help! We’ll talk to many different lenders on your behalf to find the eon that will give you the best deal. This way you can get a great mortgage without losing a lot of money each month to interest.

What Role Does Interest Play in Mortgage Renewal?

When you renew your mortgage, you’ll almost always be able to get a better interest rate. Some lenders will outright offer you a 0% or 1% interest rates in hopes of getting you in the door, but be careful! These are known as “teaser rates” or “intro rates” and can rise dramatically once you’ve been a customer for a month, 6 months or even a year. This is why it’s so important to make sure you’re getting the best deal at the outset. Let us help you make the most of your mortgage renewal!

If you’d like to learn more about mortgage renewal, let us help! We’re experienced local Toronto mortgage brokers who deal in renewals and refinancing mortgages. We’ll be able to help you find the right deal, right now.

How Mortgage Renewals Work in Canada

mortgage renewal

Most of us learn about Canadian mortgage renewal when we get the notice in the mail; but you’ll want to make sure that you don’t just fill out the form and return it to the bank! You need to be discriminating; is your lender giving you a better deal than you have now, will it be more of the same or could it be even worse? A lot has probably changed since you first got your mortgage or even since you last renewed your mortgage. This is where a Toronto mortgage broker like us can come in handy.

What Has Changed About You?

What has happened in your life since your loan was originated? Did your credit get better? If when you signed on for your mortgage your credit wasn’t that great, you may have had to pay really high interest. Now that you’ve built or rebuilt your credit, you may be eligible for a better interest rate. If you have worse credit, you could pay much more in interest than you did before. Your interest rate for your mortgage renewal is just one piece of the puzzle; we’ll look at many different factors to make sure this is a worthwhile offer.

What Has Changed About Everything Else?

Canada is quickly becoming a global powerhouse, which means interest rates are really low! With interest rates bottoming out at about 5%, you can take your double digit interest rate and get it as low as possible. This will help you own your home faster and build equity. It’ll cut down your monthly payments (this can save you thousands of dollars each year!), and it can help your credit too. If your original mortgage lender has offered you an interest rate that is higher than your current one, you’re going to need to think about finding someone else to finance your mortgage.

Mortgage Renewals Are All About Negotiating

Negotiating is what mortgage renewals are all about. We can help you find the right lender, the right interest rate and most importantly the best terms for your mortgage renewals. You shouldn’t have to haggle on your own and hope that the loan officer gives you a fair deal when we can help you know your options and choose what’s right for you. Mortgage brokers deal directly with the banks, but we don’t work for any lenders.

You Can Change Lenders

You can change mortgage lenders if your current lender just isn’t negotiating.  You’re going to need a Toronto mortgage broker to ensure that you’re getting a fair and equitable deal. Many people think that just because they signed on for their mortgage with one lender means that they’re stuck with that one until it’s over. Many homeowners change their mortgage lender one to two times over the life of their loan.

If you’d like to learn more about what mortgage renewals are and how you can use them to save money on your mortgage, contact us!