Renewing your mortgage is as important a financial decision as selecting your first one. While many Canadians spend time and energy shopping for an initial mortgage, they put in less effort when looking at mortgage term renewals. When renewing your mortgage, your current lending institution will probably not offer you the best available rate in the marketplace.
Did you know that your home equity grows over a period of time, and that decreasing your principal loan balance puts you in a good position to negotiate? During this time, decreasing principal loan balance coupled with appreciating home values allows your equity to grow substantially.
When renewing your mortgage, you are in a strong financial position. You have the capacity to obtain a rate and product that suits your personal situation.
However, many people do not take advantage of this position, and sign a mortgage renewal form without shopping around for a more favorable rate on the new mortgage. Nearly 60% of borrowers send back the renewal offered by their lender without attempting to negotiate a better deal. Leaving out proper consideration at the time of renewal costs Canadians thousands of extra dollars each year. Homeowners should never accept the initial offer from their existing lender, but should instead seek out a mortgage plan that caters to their individual needs and goals.
A good time to start shopping for a new term is generally four to six months before your current mortgage term expires. Many lenders do not give you ample time to arrange a mortgage term through a different lender. You need to know your own mortgage term, and keep track of when it is time to start searching for a good mortgage renewal rate. This is where a licensed mortgage professional comes in—they can make shopping for rates easy and less time consuming for you!
Your mortgage is one of the biggest financial decisions you will ever make, so you owe it to yourself to find the best interest rates and mortgage terms that you possibly can. When you decide to use the services of a mortgage professional to shop for the best rates, rather than signing your renewal letter and sending it back, you can save substantial amounts of money.
With my expertise in the Canadian mortgage industry, I can help you make the most of your mortgage renewal. You can do a lot more after renewing your mortgage—pay off existing debts, clear high-interest credit card bills, or renovate your home. The marketplace is full of lenders who want your business, and I can help find the one most suitable for you.
© Copyright Steve Flynn 2012. All rights reserved.