Why should clients look at renewing their mortgage right away?
All clients have a lot of things going on in your life. When it comes to your mortgage, one of the largest investments that our customers obtain, to protect your investment you need to ensure that its prioritized when it comes time to negotiate your renewal.In Canada, mortgages are on a set term, whether that be 1 year, 2 years or the most common, a 5 year fixed mortgage. At the end of this term you will always be offered a renewal with your current lender if you are up to date with all payments.However, as you are a good client, your lending institution would like to keep you with them and will provide a renewal agreement near the date of your mortgage renewal. At time, this renewal letter comes within 30 days of your renewal date and in order to ensure you are getting the best product available in the market its important to act on this renewal as soon as its received. As at time, some lenders will not provide the best overall product available to you as a client. Therefore, whenever you do receive your notice, or regardless, 30-60 days before your mortgage renewal you should be looking at all options available to you for your mortgage.
When should they look at their mortgage details to determine this?
We recommend once annually a mortgage review with a specialist. This ensures that you are meeting your goals when it comes to your mortgage as well as ensuring that you are taking full advantage of any pre-payment privileges that would benefit you. Normally, you will receive a mortgage statement once per year which provides all the details of your mortgage such as your interest rate, your maturity date, and interest and principal paid on your mortgage throughout the year. It would be good to become familiar with this form and provide it to your specialist so that they can plan the best course of action for your mortgage over the length of the term.
Where should they seek out the best advice?
Clients should initially speak with their mortgage broker/agent to see what kind of options they could access. Even if a broker is not able to get a better product at the time they would still be able to negotiate with your current lender to try and see if there is any room to get your renewal rate lowered too.
What is a mortgage renewal meeting look like?
A mortgage renewal with your broker would start with a review of your current renewal notice with your current lender. From there it would be a discussion of what your life goals are regarding your home and the use of your equity. If you are interested in accessing some of your equity, the time of renewal would be the best opportunity as the mortgage penalty would be negligible since your term has come to maturity. From there, if your broker can access a better product, or assist in using your equity, the process would be similar to an initial mortgage application, with the collection of documents and reviewing figures with different lenders for your product.
How should clients handle their Mortgage Renewal?
Seriously, just talk to a Licensed Mortgage Agent/Broker. They can always guide you on the right path. Whether it is advisable to stay with the current lender, or you can be provided a better rate, make sure you review your options. It take a few minutes and a small amount of information over the phone to see if there is better options for you. It doesn’t take this long application that most companies want to initiate with you. At Mortgage Suite we want to know your scenario first, and help guide you. It might not be the mortgage we do, but we will get you as a client in the end.
