What you need to know before you renew your mortgage could save you thousands of dollars. Is your mortgage on your home or other properties maturing in 2018?
Typically you will receive your mortgage renewal notice from your current lender 3-4 months in advance of the renewal date. Sometimes you may receive an offer for early renewal. Either way, always reach out to your Dominion Lending Centres mortgage broker to find out your options and what you need to know before your renew your mortgage.
With the new mortgage rules in effect in October/November 2016 and subsequent changes January 1st 2018 it is more important than ever to know your options before you sign a renewal.
Did you know…?
- If your current mortgage is funded before October 2016, regardless if you were a high ratio borrower or conventional borrower, the old rules for qualifying still apply
- If you want to renew your mortgage at best rates you can transfer that mortgage to another lender without qualifying under the new rules
- If you have any fees for transferring the mortgage they may be covered
- Lenders are currently offering high renewal rates as they know 65%+ of borrowers will simply sign without doing any homework
- Lenders are currently offering lower rates only after clients decline their first offer. Doesn’t seem fair does it?
Mortgage brokers have access to lots of great renewal programs from the banks, mortgage companies and credit unions.
Be informed before your mortgage renewal. Consult with an independent mortgage broker to review your financing needs for all of your properties and to set a plan well in advance of any mortgage renewal. If you are looking to make any large purchases such as investments, real estate, an automobile— know your options and the impact of these purchases on your financial situation.
Written by Pauline Tonkin