Step-by-Step Guide for Mortgage Renewal Process
At the end of your mortgage term, you are presented with the opportunity to assess your current mortgage and compare it to any new financial goals you may have set. If you are satisfied with your current mortgage plan, your current mortgage provider will send you a renewal slip in the mail that you could easily sign and send back. We suggest taking a more proactive approach with your next mortgage renewal to ensure all of your needs are met. Below mentioned is a step-by-step guide for the mortgage renewal process.
Make sure your financial goals are taken into consideration:
A whole lot can happen throughout your current mortgage term. The financial goals you set at the beginning of your current mortgage term may no longer align with your goals today. You could have over time received a substantial raise at work, lost some income or even retired, or even had to pay for your child’s tuition. You should also factor in the possibility of moving home when planning. Ensure the mortgage rate, term and product are carefully taken into consideration when choosing to renew your mortgage.
Outline your mortgage needs:
In addition to taking into consideration your financial goals, you should also make a list of what you are looking for in a mortgage product. Here a few questions you should ask yourself:
- Does your current monthly budget give you the scope to increase your mortgage payment amount?
- Do you think in the current mortgage term you invest in; you will receive any bonuses that you can put towards your future mortgage plan?
- Will you be able to complete to pay off the entire mortgage before the term expires?
- Will you borrow more money from your lender during this new term?
- Is there a probability that you will be selling your home or moving in the next 5 years?
Be extremely aware and clear of your options:
Before you renew your mortgage plan, you must identify what kind of mortgage product you want? The options you can avail from this mortgage plan with regards to your monthly payments, and how soon can you be mortgage-free. Below mentioned are a few important terms and options you should be aware of:
- Fixed-rate mortgage
- Variable-rate mortgage
- Open mortgage
- Closed mortgage
- Amortization
Be Prepared to Renew in the Last 30 Days:
It is by law that your current mortgage lender must send you a mortgage renewal statement at least 21 days before the term of your current mortgage expires. Usually, the lender tends to mail you a renewal offer that is good for 30 days before maturity. If you consider that offer, you are virtually protected from any increases during that time. If you have done your due diligence, you would know whether it’s the best mortgage rate in the market or not. And, if not, you are perfectly within your rights to negotiate with your current mortgage lender. However, it is highly unlikely they will give you the best mortgage rate. So, in the final month of your mortgage expiry, you should make an appointment with a mortgage broker/s to discuss what they can offer you to suit your needs.
The decision you make should suit your needs:
This is where you meet various lenders and identify the best option that best suits your financial situation and lifestyle. Any mortgage broker in Mississauga should help with that decision. You must keep in mind that when switching lenders, you will be asked to provide some extra documentation, such as proof of employment and income statement.
Planning to renew your mortgage? Give GNE Mortgage a call today to help us guide you through the process. You can rely on the team of friendly experts to help you chose the right mortgage renewal plan that best suits your needs.
