I talk to past clients sometimes and they tell me they're already approaching their first mortgage renewal just shy of 5 years. Time sure does fly and it often seems like yesterday that I helped a family out during this important stage of their life.
If your mortgage renewal is forthcoming, I’d like you to consider your alternatives before you sign what will probably be a 60-90 day guaranteed renewal rate from your current lender.
These couple of months in advance are a great time to think about your current circumstances and what options and features might work best for you at this time. Are you upsizing your family? Downsizing? Perhaps your job status has changed. Moving again? (Relax, my team is right here.)
Did you know that fewer than 1/3 of Canadians shop around for the best renewal rates? They often feel pressured into a decision without doing their homework. My advice is to carefully evaluate your needs, your future plans and which direction market conditions are shifting. Researching products, features, interest rates, trends and lenders may sound like work, but it could pay off!
Here are some things to consider:
- Look at renewal time as a time to start over. Pay down on some principal if you can, reduce your amortization and avoid early payment penalties. It’s also a good time to think about taking out equity for home improvements or a family matter – like getting your kids situated in their first rental by one of my buyer agents.
- Ask and you may receive! There may be new mortgage products and features available to you that offer better rates, better prepayment options, cash backs, amortizations, accelerated payment schedule, investment opportunities and more.
- Did you go variable because the rates were dropping when you signed? Experts predict interest rates will hold into 2016, but what is the outlook beyond? Should you consider locking in?
- Negotiate for the best deal – a point off your rate can save you tens of thousands over the life of your mortgage.
- You can switch your mortgage type and are not obliged to stick with your current lender if there’s a better deal somewhere else. Your new lender will probably cover any discharge fees, but remember, you’ll have to do the application, job and credit check again.)
Call me today at 416. 698.0055 today. I’ll happily recommend one of our in-house mortgage specialists, who will perform a free consultation at no obligation to review your current situation.
Just say Mike sent you!