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Mortgage Renewal Brampton: How-to Renew Your Mortgage?

Mortgage Renewal Brampton: How-to Renew Your Mortgage?

Mortgage Renewal Brampton and Mississauga

You’re nearing the end of your mortgage term, and you still have a balance owing, so it’s almost time to renew your mortgage for another term. Now that your mortgage is up for renewal, you broker can easily re-assess and compare your current mortgage with your current financial goals.

By now you should have received a notice to renew, which you easy sign. However, if you want to ensure your mortgage renewal meets your current needs then try taking a proactive approach. Here’s a step-by-step guide that will walk you through renewing your mortgage the right way.

Mortgage Renewal Mississauga

Mortgage Renewal Mississauga

Step #1 – Start Shopping Well In Advance

          It’s important to know the maturity date on your current mortgage term. This will allow you to get a head-start on your mortgage shopping well in advance, so you’re not rush into a bad decision. Typically if you’re renewing your mortgage with the same lender then 4 months (120 days) before the maturity date is usually a great time to start shopping. You can also plan this out on your calendar so that you don’t forget and this might also help you to avoid prepayment penalties.

       Even if you’re not ready to discuss your potential renewal, you should at least start to research your options so that you can make an informed decision. When you have an idea about various conditions, terms, rates and prepayment options being offered by different lenders, it will put you in a better position to negotiate when it’s time to renew.

Step # 2 – Reconsider Your Needs & Financial Goals

        A lot can change with a year, or five for that matter, which may cause you to reconsider your needs and financial goals. Your financial priorities may have changed for better or worse and that means they may no longer match your circumstances.

       Whether you’re making more or less money, you’re expanded your family, you’re sending your children off to college or you’re planning a move in the next few years, the change in circumstance should be factored into whatever decision you make regarding your mortgage products.

Step # 3 – List of Your Needs & Potential Mortgage Products

Aside from your reconsiderations to align your needs with your financial goals, you also need to compare your needs to potential mortgage products that meet these needs and goals. Ask yourself these questions:

  • Can you increase the number of your monthly mortgage payments? Is it in your budget to do so? Have you reviewed the terms and conditions, specifically prepayment options?
  • Are you expecting any annual bonuses or other monies that can help you to pay off or pay down your mortgage? Have you read about lump sum prepayment options within the terms and conditions?
  • Have you considered prepayment penalties for fixed and variable-rate mortgages? In the next do, will you have the option to pay off the principal balance on your mortgage?
  • Within the next term, is it possible you may want to borrow more money? Have you considered collateral mortgage instead? Have you considered prepayment penalties for refinancing?
  • Are you planning on selling your home at any time in the next term? Is your potential mortgage product assumable or portable?

Step # 4 – You Must Review, Even If It’s In The Last 30 Days

         If your term will expire in the next 30 days, your lender is required by law to send you out a renewal statement. This should be sent to you by a minimum of 21 days before the expired term. Most lenders will also send along a renewal offer. The offer will show the lowest posted rate, which is good for 30 days before your loan is set to renew. This will protect the posted rate during the 30 days, however, it doesn’t mean it’s the best mortgage rate. Your mortgage broker can still help you negotiate a better rate, so make to discuss with them what other lenders have to offer to you.

Step # 5 – Decision Time!

Once you’ve gone through the first 4 steps above, it now boils down to decision time. This is the time when you ask the deal-making question: Which lender is offering you the best mortgage product (with the best term and rate)? If the answer to this question comes back to your current lender then sign and return your renewal offer or negotiate with them.

If switching to another lending is the best path for you, then your mortgage broker can start working on the paperwork, which will also open up the door to the best mortgage rate. You’ll have to submit another mortgage application since qualifying requirements tend to vary by lender. Fees can also vary, however, some lenders will cover some or all of these fees, so you should always ask in advance.

A mortgage broker is a powerful resource when it comes to your needs, goals and financial circumstances. Use them to your advantage. Contact us to know more details about Mortgage Renewal Mississauga.

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