Is your mortgage up for renewal? If you haven’t gone through the process of renewing a mortgage before, you may be wondering exactly how the process works! We’ll explain everything you need to know about getting a mortgage renewal for your Toronto home.
What does it mean to renew my mortgage?
When you arranged initially to get your mortgage from a lender, you and the lender agreed to a contract that would be in effect for a certain period, such as five years. When this term ends, you must either pay off your mortgage in full or renew it under new terms.
When you renew your mortgage, you agree to a new interest rate and a new payment schedule for a specific period.
How will I know when my mortgage is ready for renewal?
If you have your mortgage with any federally regulated financial institution, they must provide you with a renewal statement at least twenty-one days before the end of your current term.
This statement should include information such as the remaining amount left to pay on the mortgage and any charges or fees that apply due to your mortgage term ending.
Do I have to stay with the same mortgage lender if my mortgage is up for renewal?
No, you don’t! You can shop with different lenders if your mortgage is up for renewal, and you may get a better interest rate if you move to a different lender.
If you switch lenders, there may be fees associated with moving the mortgage from one lender to another.
What else do I need to know about renewing my mortgage?
There are a few other things you need to keep in mind when renewing your mortgage:
- It pays to shop around! A lower interest rate can save you a lot of money over the long term.
- Think about what you can afford in the future in terms of mortgage payments. If your expenses are lower than when you initially got a mortgage, look for a mortgage that offers prepayment options – that is, the option to pay off extra on your mortgage with no fee.
- You don’t have just to accept the rate your mortgage lender offers you. Let them know you’ve shopped around, and ask them for a better rate to match what other lenders offer.
How can Northwood Mortgage help me if I’m up for mortgage renewal for my Toronto home?
We can offer you competitive rates if you want to renew your mortgage and guarantee those rates for four months for you at no charge.
Looking to renew before your term is up? With our CASH-BACK program, we can help cover any prepayment charges you may incur from your original mortgage lender!
We also offer mortgage life insurance, critical illness insurance, and disability insurance that we can add to your mortgage when you renew, providing your family with financial protection.
Contact Us Today To Get Started On The Mortgage Renewal Process!
Call us today at 888-257-8130 or contact us online to access great rates and renew your mortgage. Don’t pay more for the mortgage on your Toronto home than you have to!