How early can you renew your mortgage?
Ontario has an early renewal limit of 120-180 days
In Ontario, you can start the process of mortgage renewal at most 180 days before the date of expiry for the term. Starting earlier than that is seen as breaking the mortgage early and leaves you liable to penalties.
Why should you renew early?
- To get lower rates
- Have time to review the plan
- Access to better deals
- Compare more lenders
Every lender and financial advisor will advise you to start the hunt for the perfect mortgage plan as early as possible. The above mentioned benefits allow you to get the plan you want with enough room to bargain for a better one!
If you begin your hunt early, you can access low rates and good plans. Most lenders allow you to lock in the terms and rates for a period of 2-3 months. This can proof really helpful in terms of savings.
Once your current lender is aware of the fact that you are looking for better rates, you might have the power of negotiation and hence get better rates with the same lender! You will even have time to get a quote from other lenders as well!
With a good 2-3 months in your hand, you can even take advantage of market falls and get the best you can. If not, you will always have the time to compare a lot of deals and plans before settling on one!
How can you begin the process?
The process can be started by visiting your current lender and asking him for a quote. Once you are aware of the quote, you can browse the market yourself for more rates and plans.