Many homeowners do not realize that when they renew their mortgage with their previous lender they could be leaving a lot of savings at the table. That is why we always suggest to homeowners who need to renew to shop around and see if switching their mortgage can save them thousands of dollars.
CBC news recently provided their tips up renewal, you can view them at this link and a quick hit is below - CBC NEWS
My top 5 tips for someone renewing their mortgage:
Do not sign the renewal letter that is automatically sent to you in advance of your renewal date. Always speak to someone and negotiate.
Consider the financial institution's reputation, flexibility regarding pre-payments and rates when deciding on a lender. The stress test makes it much more difficult to change lenders so best to pick one you are comfortable remaining with long term.
Your credit score is important. Make your payments on time and try to avoid excess debt as the rate you will be offered is risk based. Try to put yourself in a position to pass the stress test so that more lenders will compete for your business.
If you need a loan, delay applying for it until after your mortgage renews. That loan could be the difference between passing or failing the stress test.
If you have a loan and are planning to pay it off, do so before you renew the mortgage (ideally a couple of months before). By eliminating that debt, you will be perceived as less risky and will likely be offered a better rate.
Mortgage Broker News also see a huge boom coming to the Toronto market. Read more about it here
Do you need to renew soon? Fill out our simple mortgage renewal application today!
