For many people, when they get their mortgage renewal in the mail, they cringe. They either don’t have time to deal with it or feel they don’t have the knowledge to figure out what’s best for them. Well I can tell you, your mortgage renewal is as important as your home purchase.

If you find your self in this situation and are overwhelmed, call your mortgage broker and have a discussion about what the best next steps are, including taking into account what the bank is offering you, in terms of rate, for your renewal. If it’s best to stay with your current lender, I for one would certainly advise that but there’s a lot more to consider.

There are some great things to think about in this recent article from The Globe and Mail.

Mortgage Renewal

“Renewal is an opportunity to revisit your monthly mortgage payment to see if it still fits your lifestyle and your financial situation.” What has changed since your purchase or last renewal? What plans do you have for this property over the course of the next mortgage term?

“Getting the best rate is often the main concern for a lot of people. But while the lowest rate may be appealing, it may also come with some hidden costs down the road, such as heavy penalties for early payout, or for porting the mortgage to another property should the need to move arise.”

This is why it’s even more important to review your situation at renewal.

Mortgage renewal time is also a great time to look at pulling some much needed equity out of your home – after all, mortgage rates are much cheaper than any other form of debt so why not minimize the interest you’re going to pay in the long term?

Mortgage Refinance

“If a client is looking to refinance their mortgage, rolling lines of credit and other debt into one loan, legal fees and the cost of property appraisal will have to be factored in anyway. While a brokerage may sometimes pick up the appraisal fee, it’s one of those things that typically gets paid by the client. However, using a lender’s legal services as opposed to a traditional lawyer can be a little cheaper.”

So before you simply sign on the dotted line and don’t give your renewal much thought, don’t you owe it to yourself and to your financial future to assess your options and make a decision that suits your needs, not the banks?

If you would like some independent, no obligation advice, please call (403-804-7002), I’m happy to help!