5 Valuable Tips for Renewing Your Mortgage in Canada

Mortgage renewal can usually be a stressful time for many Canadians. If your mortgage is up for renewal, the question you have to ask yourself is whether you want to stay with your existing lender or shop around for a new better that offers better rates and terms. Below mentioned are a few valuable tips to help with your mortgage renewal so that you can make a well-informed decision.

Evaluate your financial goals

Before you renew your mortgage, you should first evaluate your current financial goals. You want to make sure that your current lender is offering a mortgage product that suits your specific requirements. For instance, if your current mortgage term is a five-year fixed rate, the renewal slip will be fixed for another five years. If you believe that you will stay in the property for a long time, then it is a sound financial choice to renew your mortgage.

Be aware of the current mortgage market

Before approaching a lender for mortgage renewal, it is imperative to understand the current mortgage market trends. This will let you know if any changes could potentially impact your renewal, like interest rate changes etc. Stay updated with current mortgage trends by reading news articles or getting in touch with an expert.

Furthermore, before interacting with your lender, it is important to get organized. This means having all the necessary documents in order like your proof of assets, and proof of income, including your current mortgage statement. Having all the relevant documents will ensure the renewal process is stress-free.

Understand your mortgage terms

It is vital to be aware of the terms of your current mortgage before deciding to renew. This includes understanding the term length, the interest rate, and if penalties are there if the borrower decides to not oblige with the terms of the mortgage. Knowing all of this will help you negotiate a better deal on your mortgage renewal.

Understand that mortgage penalties may apply

If you are considering breaking the contract early, it is crucial to know that penalties may be involved. In some cases, the penalties can be costly, so it is vital to factor them in when making a well-informed decision.

Compare mortgage rates and terms with several lenders

Have a reputable mortgage broker like GNE mortgages compare the best rates, terms and products on your behalf. They have access to the best rates and terms from various lenders which are not available to the general public.

Conclusion

Mortgage renewal can be a daunting task. However, it does not need to be. With professional help and guidance, you can save the hassle and money in the long run. The most important to keep in mind before making a decision is to shop around and compare rates and terms from different lenders. Do not shy away from negotiating for an improved rate. Lastly, ensure you are aware and understand all the terms and conditions of your new mortgage before you sign the application.

GNE Mortgages is a reputable mortgage broker focused on helping clients by giving them access to the great mortgage rates and terms. If you are looking to apply for mortgage renewal in Mississauga, please reach out to our team to schedule an initial consultation or to find out more information. We will be more than happy to address any queries that you may have.