Don’t renew your mortgage with your eyes closed
When your mortgage comes up for renewal, your lender will send you a letter suggesting you renew at their current offer. If you do, you’ll be renewing your mortgage with your eyes closed! This is your moment of opportunity to negotiate the best possible deal, either with your current lender or with a new one. Do you know if the same lender remains your best choice? If you don’t, you aren’t alone.
A recent survey shows that 65% of Canadians do not compare between lenders when their mortgage comes up for renewal. It may be the easiest route to simply renew with your original lender. However, renewing at a lower rate can mean the difference of thousands of dollars in interest.
This article illustrates that there are several reasons to do some comparitive shopping before renewing your mortgage. Your mortgage needs are likely different now than they were when you originally purchased your home, or even the last time you renewed. Renewing at a lower interest rate can lower your monthly payments, giving you more financial freedom. You may even be able to use the equity you have built towards home repairs, renovations or even debt consolidation.
If it's time to renew your mortgage, consider your options. Enlisting the services of a professional mortgage broker can be of substantial benefit to you.