20 Jan 5 Tips To Follow When Renewing Your Mortgage In 2025
Want to renew your mortgage? Looking for a mortgage renewal deal? A mortgage renewal is the act of taking your existing mortgage balance and extending it for a new term at a new mortgage rate. When your existing mortgage provider sends you a renewal note in the mail, you’ll know it’s time to renew. You can sign and return the slip, which contains a revised mortgage rate and term offer.
To ensure you receive the best mortgage offers in 2025, it’s crucial to consider the type of mortgage you want when opting for a renewal. Since more rate reductions are promised this year, it is important to understand your current mortgage scenario before signing a deal.
Here are our top mortgage renewal tips you can follow to seal the best renewal rate:
- Consider your financial goals
Examine your financial goals before signing and returning your mortgage renewal paperwork. Verify that the mortgage product your present supplier offers may meet your needs. For instance, the renewal notice would probably be for another 5-year fixed if your existing mortgage term is a 5-year fixed rate. You should be able to choose a lender and mortgage package more easily if you know what you need.
- Start to shop around early
Getting a head start in the mortgage renewal process can have major advantages, even if your maturity date is still months away. You don’t have to wait for your existing lender to send you a renewal slip, though they probably will in the final 30 days of your mortgage term. You can start negotiating with most lenders up to 120 days prior to your maturity date.
You can start thinking about changing lenders to obtain better interest rates and mortgage terms if you are unable to work out a better deal with your present lender.
- Seek a lower mortgage interest rate
Lenders provide a quick and simple way to renew your mortgage with those small slips, making it too easy for you to reply to the inquiry, “should I renew my mortgage now?” They are aware of your busy schedule and that you will have to pay for this convenience. Even while it could be tempting to sign the slip and send it back without giving it much thought, doing so could cost you a lot of money. These initial offers are rarely the lowest rates available.
In the mortgage market where interest rates are rising, negotiating a better rate for a mortgage renewal in Abbotsford becomes even more crucial.
- Get a rate hold
Using a mortgage broker in Abbotsford and Surrey is a smart move when you are looking for a better rate. A mortgage broker may retrieve your credit report once and can offer you a range of fixed and variable rates from several lenders so you don’t have to approach each one individually. If you decide to change lenders, a broker can readily inform you what rate you might be eligible for.
For a maximum of 120 days, rate holds shield you from rise in interest rates. Don’t worry if interest rates drop during that period, you can negotiate for a lower rate if you opt for a rate hold.
- Take time to change lenders
You might be wondering, when I should start looking for a mortgage renewal in Abbotsford. If you are near the mortgage expiry period and decide to transfer lenders, apply for a new mortgage as soon as possible. The application process must include the following paperwork:
- A copy of your mortgage renewal letter
- Proof of income
- Proof that you are the owner of your house
- Proof of property insurance
With your present lender, renewing your mortgage can be simple and quick. But, you may find the best lender, terms, and rate for your current financial circumstances with a new mortgage lender. If you are looking for a trustworthy mortgage broker in Abbotsford who can help you with mortgage refinancing and renewal, rely on none other than Satbir Bhullar Mortgages. By conducting proper research, we can offer you advice and suggestions on mortgage renewal. Contact us today to get started with your application.