When is the right time to apply for a mortgage renewal?
Mortgages need to be renewed before they are paid off. A mortgage renewal is process of taking the outstanding balance of your mortgage and renewing it for another term at a new mortgage rate. Mortgage renewal provides you the opportunity to negotiate the conditions of your contract. It will help you negotiate the interest rate, and offer you more flexibility.
There are reasons to renew your mortgage rate, they are:
To help get a lower interest rate
Shorten the term of mortgage
Convert from an adjustable-rate mortgage to a fixed-rate mortgage
Factors to consider before mortgage renewal
Make a note of your financial goals: Before you sign your mortgage renewal, it is essential to review your financial goals. Make sure that your current provider can offer suitable plans to cater to your financial goals.
Compare the best mortgage rates available: The market is filled with mortgage renewal providers, please check carefully and compare mortgage rates beforehand.
Shop around early: If you are few months away from your mortgage maturity date, and start looking for the best renewal provider and start your mortgage renewal process. If you are unable to negotiate a better offer with your current lender, switch your provider and start off with the paperwork and ensure nothing is left for the last minute.
Better mortgage rate: Usually mortgage providers offer only existing customers a discount off, make sure that you find a lender who offers you a better deal.
Make time to switch lenders
If you decide to switch lenders, you will need to submit a mortgage application. Provide documentation such:
Copy of your mortgage renewal letter
Letter with proof of income
Proof of ownership of your home and property insurance
Ensure you keep your documents ready.
Key take away
Mortgage renewal time is an opportunity to choose a mortgage caters to your current financial needs. It provides you time and opportunity to shop for a better lender and save money. It can also be used to consolidate your debts or change any unsuitable part of your previous original mortgage. You can rely on us to help you with mortgage renewal Mississauga for better solutions. Our team of advisors will guide you every step of the way and ensure you make a wise choice.
Are you planning to renew your mortgage? Need guidance, we are here to help. We offer mortgage renewal solutions. Get in touch with GNE Mortgages now for details.
