Is Your Mortgage Up For Renewal?

With every mortgage renewal comes the opportunity to reflect and assess your mortgage needs before you decide on a new mortgage product. Whether your term is 6 months or 10 years, your mortgage lender will mail your mortgage renewal agreement 30-60 days prior to maturity. Most mortgage renewal agreements are at posted rates. I recommend that your speak with your mortgage professional prior to signing your mortgage renewal, chances are you will get a better mortgage offer than what is offered on the renewal.

You do not have to renew your mortgage with the same lender. You can choose to move your mortgage to another lender if it offers you terms and conditions that suit your needs better. When you refinance your mortgage with a new mortgage lender, the new lender will process the mortgage application as if you are applying for a new mortgage.

If you decide to switch your mortgage to another lender, make sure you verify the costs of changing lenders, such as legal fees to register the new mortgage, fees to discharge the previous mortgage and other administration fees. You can ask if your new mortgage lender will pay for part or all of these fees.

The great news is that upon your renewal date (maturity) you can switch your mortgage to another lender without paying a penalty. This is a great opportunity to discuss your mortgage strategy with your mortgage professional without incurring a penalty if there is another lender that meets your needs or offers a superior mortgage product.

Follow these simple steps to make sure you secure the mortgage renewal that’s right for you:

1. Start early. Did you know that most mortgages can renew as early as 120 days in advance? This option allows you to lock your mortgage in at current rates and renew early without paying a prepayment charge.
2. Consult your mortgage professional. They’ll make sure you have the latest product and mortgage information to help you make a final decision.
3. Renew at maturity. Many people wait for their mortgage to reach maturity before thinking about their mortgage renewal. If this is the case for you, some banks and lenders will offer you the lowest posted rate within the last 30 days of your mortgage term if you choose a fixed rate mortgage. This way if rates increase you are protected during the mortgage renewal process.