Mortgage renewal in Ontario might seem like a simple task. Your lender sends you a letter. It has a new rate, some updated terms, and a deadline to respond. You glance at it. The rate doesn’t look bad.
So, you sign it and move on with your day. There were no paperwork issues, nor were there meetings or questions asked. However, here’s the thing: that quick decision could cost you thousands.
The mortgage renewal process has more layers. If you are not careful, you might fall into traps. This could include locking into a higher interest rate than necessary or missing out on better terms.
Even worse, you might agree to conditions that do not match your current financial goals or lifestyle. This happens because of the assumption that lenders give the best deal, hence the need to explore other mortgage renewal options goes unprioritized.
This guide will explain what to do, what not to do, and when to take action during the mortgage renewal process.
Tip 1: Know when your mortgage renews
So, here is the score point. Many people forget when their mortgage renewal is coming. It is easy to lose track. However, knowing your renewal process date is important because it gives you time to get ready.
Every mortgage has an end date. This is called the end of your mortgage term. When the date comes, you need to go through the renewal process. If you wait too long, you might rush and make mistakes.
To be a step ahead, mark your calendar. You should start thinking about alternative options at least four months before your mortgage ends. This is key for an easy mortgage renewal experience in Ontario as it lets you compare rates, ask questions, and plan next steps.
Tip 2: Don’t sign the first offer
You get a letter. The lender says it is time to renew. The mortgage terms and rates look okay, and signing also feels easy—but stop there. That quick “yes” could cost you thousands over time. One of the smartest mortgage renewal tips is to never settle for the first offer.
It does not matter if it is a TD mortgage renewal or another bank. Better mortgage renewal rates are usually out there.
Look at your mortgage renewal options. Ask questions and shop around. The more informed you are when you’re thinking “I need to renew my mortgage”, the more money you can save.
Tip 3: Check your current needs
Your life may not be the same as it was when you first signed your mortgage. Maybe your income has gone up or down. Are you thinking of moving soon? Or do you plan to pay off your mortgage faster?
Rather than signing off on the mortgage renewal immediately, consider these important questions.
Review the mortgage terms closely. Sometimes, it does pay to renew your mortgage early if it matches your goals. Taking a moment to pause and reflect is one of the smartest mortgage renewal tips you can follow.
Tip 4: Watch out for fees and penalties
Mortgage renewal is not the same as breaking your mortgage. However, some homeowners confuse the two, which can lead to stress and unexpected fees.
In a normal renewal process, there are usually no penalties. Still, if you try to renew your mortgage early or switch lenders before your term ends, fees can appear. This includes discharge fees and prepayment charges. Sometimes, legal costs are chipped in.
Always ask questions. Knowledge always protects your wallet.
A Broker Makes Mortgage Renewal Easier
When your mortgage renewal date gets close, you have choices. However, it may be challenging to identify errors that need to be avoided or opportunities that should be leveraged.
Northwood Mortgage is one of the most reliable mortgage brokers in Ontario. We can help you shop for better mortgage renewal options across more than 50 lenders. This includes banks, credit unions, and alternative lenders.
With this approach, you gain more control and enjoy low mortgage renewal rates, saving money over time. Our team also guides the renewal process with clear advice and custom strategies.
We are here to get to work before your current term ends. Call Northwood Mortgage at 888-495-4825 or contact us online, so our experts can shop and review the best mortgage terms that match your financial situation and lifestyle.
