Mortgage Renewals and Transfers
The full length of your mortgage (amortization) is broken up into smaller time periods called terms. Near the end of your mortgage term your lender will send you a notice that it is time to renew your mortgage and sign on to a new term. You’ll agree to the length of the term, your payment frequency, your interest rate, and any fees or charges that apply. But most lenders aren’t likely to offer you anything less than what you agreed to in previous terms. A 2015 mortgage consumer survey showed that more than half of homeowners renewed their mortgages based on the terms presented to them, without negotiating or even asking for a better deal!
Lenders don’t tend to offer up their best pricing at renewal time because they know you probably won’t want to deal with the hassle of trying to switch to a new lender, especially if the end of your term is only a few weeks away. Trying to sort out who has the best deal can be time consuming and making sure you have all the little details can be tricky. Which is why Calgary Mortgage Brokers will do it for you! We suggest you start looking at options 4 months before the end of your term. This will give you time to find and take advantage of your best solution. Contact us today to find your best rate!