Renewing your mortgage:

 

Get expert advice and tips to help guide you to get the best mortgage rates in Ontario.  As your mortgage term is coming to an end, you have a decision to make - to stay with your current lender and renew your term or do a switch to get a new mortgage with another lender.  

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Want to save even more money and get a better rate?  My experience and relationships have allowed me to help you do better than just signing that renewal letter.  It pays you to reach out to me FIRST and see how I can help you do even better.  I often can!

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What it Means to Renew Your Mortgage

When you get a mortgage with any lender, your contract lasts for a specific period of time (called a mortgage term). This term typically lasts from 1-year to 5-years or longer.  The most popular term today is a 5-year fixed mortgage or variable mortgage.  Unless you are able to pay the remaining balance in full, you will have to renew your mortgage at the end of each term (more than once to fully pay it off).

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Your Renewal Statement

According to Canada.ca, "if your mortgage contract is with a federally regulated financial institution, such as a bank, the lender must provide you with a renewal statement at least 21 days before the end of the existing term. Your lender must also notify you 21 days before the end of your term if they won’t renew your mortgage.

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The lender will provide you with paper statements or electronic statements, if you consent to this method of communication.

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A renewal statement must contain the following information:

• the balance or remaining principal at the renewal date

• the interest rate

• the payment frequency

• the term

• any charges or fees that apply

 

The renewal statement must also specify that the interest rate offered won't increase until your renewal date.

You may receive a mortgage renewal contract at the same time as a renewal statement."

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Note:  Often times your lender will send you a renewal 3-4 months (60 days otherwise) ahead of the end of your term.  You do not have to wait to make the change.  There could be a penalty to do so, but it can still be beneficial to do so early.

 

 

Now is the Time to Assess Your Current Needs

• Should you still be in the same mortgage product?

• Can/should you pay down your mortgage before renewing?

• What payment frequency makes sense today?

• Do you need to consolidate debts or take out cash?

• Need additional money for insurance or other life needs?

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Switching your Mortgage:

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This happens when you take your current mortgage to another lender for the same amount.  If you need extra money, then you are looking to refinance.  When switching, you can often get better rates and terms to match your current unique situation that could save you thousands on your mortgage.  You will need to go through the whole process of getting approved and the new lender may use different criteria to decide to approve you.  This is an important role of your mortgage broker - me.  I help you know who and where to go and help you each step of the way, making it easy.

 

There could be costs to changing lenders, such as

• setup fees with the new lender, which may include discharge, registration, transfer and/or assignment fees from your current lender

• an appraisal fee to confirm the value of your property (if necessary)

• other administration fees

• potential additional fees if you have a collateral charge

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How to Get the Best Renewal Rates in the Ontario:

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Work with a broker, like me!  The landscape is constantly changing and your current lender isnt always the best rate available to you.  Make sure you make sure before renewing blindly.