If you’re thinking about renewing your mortgage, there are a few things to keep in mind. First, the interest rate on new mortgages has been moving lower for several years now, so there’s a good chance that you could get a lower rate if you wait. Second, if your mortgage is due soon, it might be worth considering refinancing to take advantage of current low rates.
There are many different ways in renewing a mortgage in Canada. One option is to contact your lender directly and ask if they offer a renewal program. If they do, follow the instructions provided. You can also search for online renewal programs or call a dedicated mortgage renewal hotline. Another option is to enter into a pre-arranged renewal agreement with your lender. This way, you know all the details ahead of time and there are no surprises when it comes to fees or terms.
Steps to Renewing Your Mortgage
1) Gather your paperwork for mortgage renewal
Mortgage renewal paperwork can be daunting, but with a little preparation, it need not be. Gathering your documents in advance will help the process run smoothly and ensure you have all the information you need. The most common documents required for mortgage renewal are:
- Current mortgage statement
- List of all outstanding debts
- Proof of income (pay stubs, T4 slips, etc.)
- Recent credit score report
2) Compare rates and products for mortgage renewal
When it comes time to renew your mortgage, it’s important to compare rates and products from different lenders. Doing your research can help you save money on interest payments and find a product that better suits your needs.
Some factors to consider when renewing your mortgage include the term of the new mortgage, the interest rate, any fees associated with the renewal, and whether you want to switch to a fixed or variable rate.
It’s also important to keep in mind that not all lenders offer the same products. So be sure to shop around and compare rates and products before making a decision.
- Look online and through newspapers/magazines
- Contact a few mortgage brokers
- Talk to your current bank/lender
3) Review your mortgage renewal options
It’s time to start thinking about your mortgage renewal options. Your current mortgage agreement will expire in the next few months, so you’ll need to decide whether to renew it or not. Here are a few things you should consider when making your decision:
- What are the interest rates currently available? Compare the rates offered by your current lender with those offered by other banks and credit unions.
- Are there any prepayment penalties associated with the new mortgage agreement? If you decide to renew with your current lender, be sure to ask about any penalties that would apply if you decide to pay off the mortgage early.
- Are there any other fees associated with the new mortgage agreement? Some lenders may charge an administration fee or a closing cost when you renew your mortgage.
- How long is the new mortgage agreement for?
4) Select your best option for renewing your mortgage
When it comes time to renew your mortgage, you have a few options. You can renew with your current lender, you can switch to a new lender, or you can port your mortgage. Each option has its own benefits and drawbacks, so it’s important to weigh all of your options before making a decision.
Renewing with your current lender is the simplest option. You don’t have to worry about applying for a new mortgage or going through the approval process. And since you’re already familiar with your lender and their policies, there’s less chance of surprises down the road.
Switching to a new lender may be a good option if you’re looking for a lower interest rate or if you want to switch to a fixed-rate mortgage. It’s also worth considering if your current lender doesn’t offer the products or services that you need.
5) Complete the mortgage renewal process
Renewing your mortgage doesn’t have to be a stressful process. Here are a few tips to help you complete the renewal process smoothly.
- Review your current mortgage documents and compare them to the new terms offered by your lender.
- If you’re happy with the new terms, sign and return the mortgage renewal paperwork to your lender.
- If you want to negotiate any of the terms, call your lender and discuss what changes you would like to see made.
- Once both parties agree on the new terms, the lender will send you a revised mortgage document for signature.
- After signing the revised mortgage document, it will be returned to the lender who will then forward it on to the title company or lawyer handling your file.
- Congratulations! You’ve successfully renewed your mortgage!
