Renewal time is renegotiation time!
If your mortgage renewal is approaching then you’ll soon be at an important financial milestone. Lenders send out renewal forms just prior to renewal dates to those with good payment histories, with about 70% of homeowners sending it back without asking any questions. In today’s hectic world, that can be the easiest route, but you should ask yourself some questions before you sign on the dotted line... this could be an important moment of opportunity!
DID YOU KNOW: Banks make A LOT more money on renewals than they do on your initial mortgage term. This is because many mortgage consumers don’t put as much effort into renewing their mortgage as they did when they first purchased their home.
10 things to consider before your mortgage renews:
Have you explored all your options? Has your family or financial situation changed since you first purchased your home? Let's look at opportunities that could better meet your needs right now.
Are you comfortable with your payments? If you've been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more easily managed level. On the other hand, if you're earning more, why not pay down your mortgage faster and save thousands of dollars in interest over time?
Do you need cash flow for other things? Your priorities may have shifted since you first bought your home, and your cash flow needs can shift too. Things like paying for a child’s post-secondary education, planning a career change, down-sizing, up-sizing, or a major purchase may call for spending money on things other than your home.
Can you handle fluctuating rates? Some homeowners are nervous about any hikes in interest rates, while others are comfortable to go with the flow. Rates are tough to predict. It’s best to base your decision on your personal situation, not what you read in the news, and tailor your mortgage renewal around your needs. I’ll help you decide whether to opt for fixed or variable rates – and we don’t want you to lose sleep over your decision!
Are you thinking about selling soon? If you are thinking about moving in the near future, consider a shorter term mortgage, or one that has flexible terms so you’re not penalized if you sell your house before the mortgage comes due.
Are you thinking about a major renovation? We all know that projects like a new kitchen or finished basement pay off and add considerable value to your home, but the cost of having the work done can tie up a lot of money. Before you renew, think about all your financing options, which may include getting a line of credit or keeping monthly mortgage payments low so you have money on hand to finance the renos.
When do you want to be mortgage free? If you’re planning extended time away from work or perhaps an early retirement, it may make sense to pay down your mortgage sooner rather than later. While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long term and can prepare for that fabulous mortgage-free lifestyle.
Could you use your home equity to fulfill other goals? Refinancing a mortgage can be one way to free up cash for other things, which could even include buying another property! Mortgage renewal time is an ideal occasion to review all the options.
Have your insurance needs changed? If your financial situation has changed since you first took out your mortgage, review whether you need the same level of insurance in place to cover mortgage obligations.
Are you 'really' getting the best rates & terms? In a competitive mortgage environment, your good credit history can make refinancing work to your advantage. I analyze mortgage markets daily to ensure you don’t miss any money-saving opportunities.
Having multiple lenders compete for your business is a great way to ensure you get the best rate for your situation. We deal with multiple lending institutions, including major banks, credit unions, trusts and other national and regional lenders, which means we can put significant negotiating power behind finding the best mortgage to fit your specific situation.
Call me first to discuss your upcoming renewal!