3 Things You Should Consider If Your Mortgage Coming Up for Renewal

When it comes time to renew your mortgage, most lenders will send you a mortgage renewal within 120 days of remaining on your term. Studies show, that nearly 60% of borrowers simply sign up for their renewal without even comparing interest rates. We, Mortgage Capital Investment would recommend you take a moment to check out your options.

Let’s discuss a few tips on how to check your options.

1-Do Your Rate Research

Do a quick search on how do current mortgage rates compare to what you’re paying now? Are they lower or creeping higher than average?

Knowing what other financial institutions are offering in comparison to your current rate will give you a suggestion of how much wiggle room you have to negotiate

2-The Lowest Rate May Not Be the Best

Cost-effective doesn’t necessarily mean better when it comes to your mortgage renewal. So it’s best to read the fine print before you sign up. Feel free to ask the lender what penalties are associated with the lowest rate. For example, by accepting the lowest rate, if you are sacrificing the ability to make extra payments. Also, what penalties you must pay for breaking your mortgage early.

You may want to contact Mortgage Capital Investment when it’s time for a mortgage renewal for better solutions.

3-Consider Making the Switch to a Broker

Did you know? Bank of Canada study found that having a broker could result in getting a lower mortgage renewal rate than the big banks. If you’re looking for a better deal than regular banks, consider switching to another lender or broker.

Conclusion

 At the very least, by shopping around your options you can rest assured that you signed up for a competitive rate.

To make the exploration process simple, connect with a mortgage broker. Feel free to contact Mortgage Capital Investment anytime soon!

Comments

Post a Comment

Popular posts from this blog

What Are The Benefits Of Early Mortgage Renewal?

Image
Early mortgage renewal refers to renewing a mortgage early without penalty and reducing the monthly payments to the amount the borrower originally approved for. If you are in a position to refinance your mortgage easily, a mortgage renewal is the best option for most people.  Let us look at 4 different benefits of early mortgage renewal: 1- Locking in a lower interest rate It can help you save money and stress in the long run. By locking in a lower interest rate, you can reduce the amount of money you pay each month on your mortgage. 2- Avoiding a potential rate increase By avoiding a potential rate increase, you can keep your payments affordable and protect yourself from the possibility of rising rates. 3- Securing a longer loan term By securing a longer loan term, you can keep your monthly payments low and give yourself more time to pay down your mortgage. 4- Provides peace of mind When you know that your mortgage is taken care of, you can avoid the hassle and stress of finding a new
Read more

Tips To Consider Before Buying a House In Canada

Image
Buying a house in Canada can be like a dream come true for many. Due to increased demand and tight laws, it can be difficult to buy your dream house, but certain tips can help ease the process.  1. Saving for a down payment The primary step to buying a house in Canada is to save your capital for a down payment because Canada has a rule which states that you'll need to put at least 5% of the home purchase price as a down payment. 2. Organize your finances and documents While saving for your down payment, ensure that your finances and paperwork are properly organized because down payment saving can take up your months of time.  3. Look for rebates and grants Buying a house in Canada can be an expensive task, especially when you are already short on capital. Therefore, checking for grants and rebates from time to time can be really helpful.    4. Compare different mortgages It's important to compare different mortgage rates as even the lowest rate can save you tens of thousands of
Read more

Smart Reasons Why You Should Refinance your Mortgage

Image
Anybody would like to get the lowest mortgage rates in Ontario. That is why a fall in the interest rates is usually the best time to refinance your mortgage.  This blog gives three reasons why refinancing your existing mortgage is a great idea.  1 - Reduce your monthly payment and interest rate  When you lock in a cheaper interest rate as a borrower, you might save thousands of dollars over the life of your loan. A lower interest rate often translates to a cheaper monthly mortgage payment.  The interest you save thus, might be used to pay down other interest-heavy debt, put more money in your savings account, or contribute more to your retirement fund.   2 – Reduce the length of your loan period  Many people start off with a 30-year mortgage and after a few years, refinance to a 15-year fixed-rate mortgage. The mortgage is paid off sooner this way and it also saves them a significant amount of money in interest during the loan's term. As mortgage rates on 15-year borrowings are low
Read more