Is your Mortgage Up for Renewal? Here is what you need to know!
If you owe a balance at the end of your mortgage term, you will need to renew your mortgage for another term. Here is what you need to know.
Remember that renewing a mortgage term gives you an opportunity to assess your current mortgage and compare it with the new financial goals you may have. If you wish to have all your financial needs met, then you need to take a proactive role in renewing a mortgage, rather than signing and mailing back the mortgage slip sent by your lender.
- Start early – Take note of and remember the current mortgage term’s maturity date. This can help you review and plan out your renewal terms and financial goals. By finding out which lenders are offering what, in terms of mortgage rates, prepayment options and other terms and conditions, you will be better informed to negotiate when you are ready to renew.
- Determine your financial goals – Your financial goals near the end of your mortgage term may have changed from the goals you had at the beginning of the term. So take the time to reconsider your goals and then determine the mortgage renewal terms best suited for you.
- Outline your new mortgage needs – Take the time to determine what you need form your new mortgage term. Check if you can increase your mortgage payment amount, if you receive an extra bonuses, inheritances or income to pay off your mortgage or if you want to borrow more from your lender for the new term.
- Be prepared to renew – By law, an individual is required to renew the mortgage 21 days before the end of the term. In order to add a financial buffer for you, plan out your budget to be prepared to renew your mortgage around 30 days before the end of the term. Consider if you wish to continue your mortgage with your current lender or want to switch your lenders.
If you need more advice on mortgage renewal, get in touch with the Mortgage Agent at Ontario Lending Group.