Homebase Mortgages

How Mortgage Renewals Work in Canada


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!

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