The first thing you need to do is be aware of your actual renewal date. Once you confirm your renewal date you can start the process of comparing rates 4-5 months out before your renewal. Find out what the best rate your lender is able to get you, and then compare that rate with a referred mortgage broker. There’s no cost to switch your mortgage to another lender at time of renewal, however you would still need to go through the underwriting process in order to move it.
By speaking with a mortgage professional it ensures you get the lowest rate locked in 120 days before you have to renew. This protection is something that also makes your renewal process easier and can save you a lot of money. Be aware that your current lender may try to offer you an early renewal rate 6-12 months in advance. This renewal offer is not usually the best deal the market can offer and may have penalties tied into the rate they are offering you. Be sure to ask them what costs are included with this type of renewal option and do not sign on the dotted line without first speaking directly to your mortgage broker to get the best deal the market can offer.
Make sure you get a review of your current financial situation to ensure you are being properly advised on any future plans or expenses you may have as well. For example: Do you have higher interest debt you would like consolidate? Are you considering moving in the near future. Are there any major expenses you will be incurring specific to the home or something else? All of these factors determine what sort of mortgage you should renew into, but more importantly they make sure that all your needs are being looked after at this critical moment in the life of your mortgage.
The best advice is prepare well in advance and talk to a trusted Mortgage Broker who can shop around for you and offer all the options you need to get the best possible mortgage for your financial goals.
Jeff Attwooll – Mortgage Broker
VERICO K-W Mortgage
519-620-1175
jeffattwooll.ca