Many Canadians are approaching their mortgage renewal period this year. However, simply waiting until the renewal date arrives is not the best approach. The sooner you start preparing, the more opportunities you’ll have to secure better terms. Additionally, considering refinancing during the renewal process can help consolidate other debts or adjust your monthly payments.
So, how can you make the most out of your mortgage renewal?
1. Review Your Current Mortgage Terms
Start by checking your current mortgage details, such as interest rate, remaining term, and any penalties for early renewal. Understanding these factors will help you compare new offers effectively.
2. Analyze Market Conditions and Interest Rate Trends
Keep an eye on interest rate trends—are they rising or falling? This will help you decide whether a fixed or variable rate mortgage is a better option for you.
3. Compare Renewal Options from Different Lenders
The renewal offer from your bank may not always be the best deal. Be sure to compare options from other financial institutions and mortgage brokers. Sometimes, switching to a different lender can be more beneficial, or you may be able to negotiate a lower rate with your current bank.
4. Consider Refinancing Your Mortgage
Instead of simply renewing your mortgage as is, refinancing may offer additional financial benefits:
- Debt Consolidation: If you have high-interest debt, such as credit cards or personal loans, refinancing can help combine them into your mortgage, which typically has a much lower interest rate. This can reduce your interest burden and simplify payments.
- Lower Monthly Payments: If you need to reduce your monthly expenses, extending your mortgage term can help lower your monthly payments.
Start Preparing At Least 6 Months in Advance
If your mortgage renewal is approaching within the next six months, now is the time to start preparing. Be sure to consult a mortgage expert to explore all your options and secure the best possible deal.
Thank you!
