05 Aug Top 7 Mistakes To Avoid When Getting Mortgage Renewal

Is your current mortgage about to mature, or are you wanting to change it? Do not forget renewal management and plan ahead of time. This will prevent unpleasant shocks and create unique opportunity to improve your financial status. In the face of rising interest rates, financial advisors can be inventive in offering homeowners the best available terms, allowing for significant savings.

Some renewal mistakes to avoid are:

• Starting your search too late

A common mistake is failing to plan ahead of time when it comes time to renew your mortgage. Anticipating as much as possible, ideally 12 to 18 months before the deadline, allows you to calmly analyze all opportunities, identify new needs, and bargain effectively. Furthermore, most financial institutions need a three to six-month cancelation time, depending on the bank’s framework contract.

• Not comparing offerings

Neglecting to compare market offerings is a common mistake. Eight out of ten buyers avoid comparing options until the final minute. It is unfortunate that we did not take advantage of this opportunity to harness competition and select the most financially advantageous recipe.

• Not selecting a mortgage model

Depending on present and predicted market conditions, you can choose between fixed-rate mortgages and variable rate mortgages in regards of a rate decrease or a sale.

• Ignoring the progression of your situation

Have you started a family, advanced in your job, retired soon, your children are financially independent, and you intend to make a donation? Be aware that several possibilities available for renewing your mortgage to perfectly adapt to your changing personal circumstances and goals.

• Giving too little financial flexibility

Mortgage brokers promote analyzing many adverse circumstances that may occur in your life (interest rate increases, family or professional events, etc.) and adjust your financial capacity accordingly.

• Avoiding deadlines and cancellation costs

The renewal requirements vary depending on the lender, and it is critical to confirm the contractual terms of the signed mortgage (fees, interest rates, payback terms, penalties, etc.) before proceeding with the renewal procedure.

• Not communicating with an advisor

Mortgage brokers recommend starting to prepare for your mortgage renewal about 12 to 18 months before the expiration date. This allows you ample time to investigate the numerous options available, assess your needs, and acquire the paperwork required to make informed judgments. 

Conclusion

Turning to an expert mortgage consultant allows you to be better prepared and benefit from their expertise in finance, risk analysis, and tax optimisation, with the assurance that they will defend your interests in a neutral and transparent manner.

Satbir Bhullar is your go-to choice mortgage broker in Abbotsford, specializing at mortgage approval, refinancing and renewals at the lowest rate possible. You can calculate your renewal costs by using our online mortgage renewal calculator. For more details, give us a call today.