Make the Most of Your Mortgage Renewal
Greater than 70% of Canadians settle their mortgage renewal with the original lender without even considering to shop for a lower rate. The implications behind this statistic reveal that homeowners often pay a higher rate of interest simply because they don't have the time to review other offers. Don't get duped into paying more than necessary. Discuss refinancing options with your mortgage broker during your renewal period. Your current mortgage lenders may be bluffing when they assure you their rate is the best one available.
A mortgage switch could save you spending thousands of dollars unnecessarily.
Mortgage Renewal Options
Closely assessing your mortgage renewal statement will allow you to decide whether or not your mortgage lender is offering you the best mortgage rate. If not, consulting with your mortgage broker to find a new lender may save you money in the future.
You are entitled to make a mortgage switch within the mortgage renewal period, and as long as your mortgage term isn’t being broken, there are rarely financial consequences.
It’s important to remember that rules for mortgage transfers change from province to province. Ensure you have a thorough understanding of the legalities involving these rules. It is advised that you hire a mortgage broker to assist you in this mortgage renewal process. This will guarantee that you fully comprehend the process after having every chance to survey available rates.
Mortgage Switching Costs
When switching mortgage lenders, it is probable that some expenses are involved. These could include:
- An appraisal fee
Mortgage lenders must know the value of your home before they can agree to a mortgage deal. This appraisal can cost as little as $150 or as much as $300.
- A discharge statement fee
A cost of $150 to $300 for the discharge fee collected by your current mortgage lender if you opt to switch lenders before your mortgage renewal period.
- Legal fees
Legal council is necessary to register a new mortgage. Based on what is being drawn up, this can cost anywhere between $600 and $1,500.
While the expense of switching a mortgage may seem considerable, don’t be alarmed. Mortgage lenders will often assist in covering part (or all) of the expense for the chance to take you on as a client.
Avoid Hasty Mortgage Renewal Decisions
Many mortgage lenders assume their borrowers will not hunt for lower mortgage rates. Online mortgage companies, such as FamilyLending.ca, allow borrowers to avoid being left unaware.
FamilyLending.ca is connected to a wide network of mortgage lenders, and can help you in your search for a competitive mortgage rate. We want to help you find the best mortgage for your needs.
Searching for mortgage renewal advice? Contact FamilyLending.ca to lower your mortgage rates today.