If you’re looking for a trusted, experienced, and knowledgeable Regina mortgage broker to help a first-time home buyer, I am here to help. No matter what stage you are in the mortgage process, I can assist you in securing financing to get the home of your dreams. I also understand that all those mortgage rules and regulations surrounding the process can be confusing. My team and I are here to answer all your mortgage questions and help you achieve home ownership. In my latest article, I explain that mortgage renewal is one of the most financially significant decisions a homeowner will make. It’s also one of the most overlooked. Every few years, your lender sends you an offer to see if you will be renewing your mortgage with them, and the vast majority of Canadians sign it and send it back without a second thought. That habit can cost thousands of dollars. Here’s what you should actually be doing when renewing your mortgage.
Your Lender Is Not Necessarily Offering You Their Best Rate on Renewing Your Mortgage
Banks know that many clients renew with little research or comparison shopping. As a result, the first offer you receive isn’t always the most competitive option available. Clients who negotiate or compare options through a mortgage broker often find more competitive rates, better terms, or both.
Renewal Is Your Legal Right to Shop Around
When your mortgage term ends, you are not obligated to stay with your current lender. You can move your mortgage to an entirely different lender without penalty because you’re not breaking your term early. This is one of the few moments in homeownership where you have significant leverage, and most people don’t use it.
A mortgage broker can compare offers from dozens of lenders in the time it would take you to make one phone call to your bank. That comparison often uncovers options that may reduce your costs, improve flexibility, or both.
Many homeowners are surprised to learn that switching lenders at renewal is often a straightforward process, and in many cases, the new lender will cover some or all of the associated transfer costs.
More Than Just the Rate
The interest rate matters, but it’s not the only thing worth evaluating at renewal. You should also be looking at prepayment privileges (how much extra can you put down each year without penalty), penalty structures if you need to break the mortgage early, whether a variable or fixed term makes more sense for your current situation, portability features if you expect to move during the term, and whether your amortization should be adjusted based on changes in your income or goals.
Renewal is also an excellent time to access your home equity if you’ve built it up. If you have renovations planned, debt to consolidate, or a secondary suite you’ve been thinking about building, renewal can be the moment to restructure and make that happen.
Your Life Has Probably Changed Since You Last Signed
Mortgage terms are typically three to five years. A lot can happen in that time. Your income may have changed. Your family may have grown. You may have taken on or paid off other debt. The mortgage that was right for you five years ago may not be the right structure today. Renewal is the moment to reassess.
What to Do Right Now
If your renewal is coming up in the next four to six months, that’s the ideal time to start the conversation. You don’t need to wait until your lender contacts you, and starting early gives you more time to evaluate your options.
A mortgage renewal isn’t just paperwork. It’s an opportunity to make sure one of your largest financial obligations still aligns with your goals.
Before you sign the renewal offer sitting in your inbox or mailbox, let’s take a look at your options. A short conversation could save you money, improve your flexibility, or both.
PLEASE NOTE:
Mortgage rules and lender policies change all the time. Because Ryan has access to many lenders and has specialized expertise in structuring mortgage applications, he can determine the optimal way to structure your application to maximize the utilization of things like employment income, self-employment income, Canada Child Benefit income, disability income, maternity leave, down payment sources, credit issues, debt ratios, etc. The choice of lenders, combined with his experience, can make the difference in qualifying for and/or securing the amount you want. It’s not just about the best rate; it’s about flexibility and choices.
