6 Mortgage Renewal Tips to Save You Money-by Amy Morley
Thank you to Amy for sharing some insights on renewing your mortgage. First up, a quick intro!
Hi! My name is Amy Morley, and I am a Mortgage Agent with the Mortgage Coach.
As a mortgage professional who strongly believes in an exceptional client experience, I work hard to offer my clients the best mortgage options to best suit your needs, not just for today, but a mortgage that also continues to offer flexibility for your wants, needs and goals in an ever changing world.
I strive to remove the intimidation factor through a friendly and efficient process, taking into consideration your busy schedule. My goal is to enable and empower all of my clients through knowledge and education in order to help you make the best decisions and to provide you with peace of mind.
From the initial consultation, to funding, to the ongoing file review, I do my best to ensure that you continue to save time, effort and money. Whether you are ready to go or just want to say hello, I can be reached at amy@themortgagecoach.ca or you can find more information on my website at amythemortgagecoach.ca
We all know that we need to assess our health with routine eye and dental appointments and we take the time to oil and lube our vehicles, but how many of you take the time to schedule a financial assessment? Is the mortgage contract you signed 5, 10 or 15 years ago still the best product for you today?
To help you find the right mortgage, consider if:
your budget allows you to increase your payments to pay off your mortgage sooner and save on interest
you want to change your payment frequency
you’re likely to make additional payments
you’re satisfied with the services offered by your current lender
you want to consolidate other debts that have higher interest rates and increase the amount of your mortgage
When you are renewing your mortgage, this is also a good time to review your insurance needs.
Your lender is required to send you a mortgage renewal contract or letter of cancellation within 21 days of your term expiration. However, it is strongly recommended that you start speaking to your mortgage specialist at least 3 months prior to this. By working with a Mortgage Broker, just one phone call can determine the best mortgage product for you from multiple lenders.
Has your credit score improved since you first got your mortgage? You may have been placed in your initial contract based on insufficient credit, by simply signing a renewal contract, your situation may not be reassessed.
Do you anticipate any large expenses over your next term? Perhaps it makes sense to take out some equity in your home at a lower interest rate? Perhaps you now have enough equity in your home to obtain a low interest home equity line of credit (HELOC)?
Are you expecting a large sum of money over the next term that you would like to use to pay off your mortgage? If you are not placed in an appropriate mortgage contract, you may have to pay a penalty to pay off your mortgage sooner.
Better interest rates. Auto renewals typically do not come at the best rate available. A broker will review your situation and advise you whether or not, automatic renewal is in your best interest with this same lender. A broker may also be able to negotiate a better rate for you.
Promotions. Mortgage lenders run promos from time to time that can offer significant savings. A broker will be aware of these and determine if your situation is eligible for any cost savings promotions.
Are you considering an investment property? A broker can set you up in a proper manner, with the best lender and product to help you to qualify for your first and even subsequent rental properties.
Costs to change lenders
There may be costs associated with changing lenders, such as:
setup fees with the new lender, which may include discharge, registration, transfer and/or assignment fees from your current lender
an appraisal fee to confirm the value of your property (if necessary)
other administration fees
Your new mortgage lender may be willing to pay for some or all of these costs to switch. A broker can help you identify these costs up front.
Amy the Mortgage Coach