Posted onMay 11/2015
It’s fast approaching, that time that every homeowner is faced with: Mortgage renewal.
Without the right broker, the renewal process can be far scarier than it sounds. However with one of our mortgage professionals at Northwood, you’ll be able to renew your mortgage in a simple and smooth process.
But how does a mortgage renewal work, and when should you start the process?
A good broker will contact you at least four months prior to your renewal date. There are many reasons that you are given a head’s up. You may have forgotten that your mortgage needs to be renewed or your broker has already started looking around for you. Either way, advanced notice should be welcome.
When you sit down with your broker, you can lay it on the table. Maybe your needs have shifted and the terms of your current mortgage don’t apply to your financial situation anymore. Perhaps you’ve come into money or you’re looking for funding to retrofit your home with eco-friendly products? Maybe you’ve started your own business and are now considered self-employed, or you’ve had kids and they all need braces? Whatever the case may be, the mortgage renewal process can address each issue and your broker will get you the product that suits your new needs. A renewal can also take you from a fixed to variable mortgage and vice versa. The purpose of the renewal is to get you even better funding.
During the mortgage renewal process, your broker will discuss your needs with lenders and will use your situation as leverage to have lenders compete for your business, ensuring you get the best rate. By doing so, you have all the power and can select the perfect package. If you want to stay with your current lending institution that’s fine too. There is no rule that says you can’t remain with your lender when want to renew your mortgage.
If your bank is your current mortgage provider, a renewal is an opportune time to start working with a broker. Your bank will only give you what they’re allowed to. That means, they can only offer their products. Banks know that when they’ve gotten your business, they’ve also gotten your trust. They take advantage of this and may tell you that you’re getting a great deal knowing that you either may not want to negotiate or not realize that you can. When it comes to your finances, everything is up for negotiation, especially when it comes to mortgage renewals.