3 Tips For Renewing Your Current Mortgage Before It Ends

Are you thinking about mortgage renewal? Before a mortgage is finally paid off, most mortgage holders require at least one renewal. It is more crucial than ever for mortgage holders to be aware of their alternatives when it comes to mortgage renewal Surrey and to take a calculated risk in order to lessen the impact of perhaps increased payments. 

The act of taking your mortgage’s existing balance and extending its term at a new and lower interest rate is known as a mortgage renewal. If you’re renewing your mortgage, here are our top mortgage renewal tips for reducing the financial impact:

1. Consider your current financial goals

Examine your financial goals first, then sign and return your mortgage renewal form. Make sure your current provider can give you with a mortgage program that meets your demands. For instance, the renewal slip would probably be for another five-year fixed if your existing mortgage term is five years at a fixed rate. If you are thinking of downsizing or even moving to a different place over the next few years, you might want to consider a 3-year product.

2. Start to shop around early

It is normal for your existing lender to send you a renewal slip within the final 30 days of your mortgage term, but you can begin negotiating as early as 120 days prior to your maturity date. Find the maturity date on your mortgage contract and count backwards by 120 days on a calendar to make sure you’re prepared.

This provides you time to start thinking about switching lenders if you are unable to work out a better deal with your existing one. A mortgage broker can help you identify the best package and offer advice on mortgage renewal even though you might not be able to change your mortgage until your actual renewal date. It also gives you time to prepare the documentation so that you don’t have to rush at the last minute.

3. Ask for a better mortgage rate

Renewal customers typically receive a discount off the quoted rate from their mortgage provider. If your current lender isn’t able to provide you the best deal available, a competing lender typically may provide cheaper rates. In a context of rising interest rates, negotiating a better deal on a mortgage renewal becomes vital. You can see how much money you can save on a $500,000 mortgage with a 25-year amortization by requesting a better rate.

Conclusion

Few mortgage holders are just too afraid to approach the lenders for a negotiation on their renewal mortgage rates. One of the most common reasons behind lender switching at renewal time is the ability to obtain the best mortgage rate. If you are looking for an experience mortgage broker in Surrey BC, rely on no other than Satbir Bhullar. We are a trusted name when it comes to getting the best mortgage renewal in Surrey BC. For more details, give us a call today.