When your mortgage comes up for renewal, have you thought about what you are going to do? Typically, you will receive a slip in the mail from your lender with directions to sign the form, mail it in and your good to go. Seems straight forward… right?
Banks are hoping you will be too busy with work, life, families, etc. to bother looking into your options before sending that little slip of paper back into them.
What happens if I just sent back the form as is?
When you sign the form and send it in, you are telling your lender that you are ready to stay with them, on the new term they have offered. Often, this means you are not getting the best rate available. Like cell phone plans, home internet, etc. the best offers are often only given to new customers.
At the time of renewal, this is your moment to renegotiate!
What are my other options?
Regardless of it is a simple renewal or if you are looking to accessing equity by refinancing, a new lender can offer a better rate and generally will cover the costs of moving your mortgage over to their institution. Think of it as if you were switching cell phone plans/home internet plans to get a better service and save money.
How do I prepare for my mortgage renewal?
Your bank may or may not contact you in advance. It’s very important you are proactive and start to research your options 3-4 months before your mortgage renewal date. This sounds daunting, but by using a licensed mortgage agent, they will do all of the leg work contacting and negotiating with the various financial institutions on your behalf.
Your Mortgage Agent will ensure you are matched with the best mortgage product which suits your needs. Once they have a solution, they will present you with their findings and if you are aligned, they will guide you through the next steps of switching things over to the new bank.
Most importantly, this is your prime opportunity to re-evaluate your mortgage without being penalized. If your mortgage is up for renewal soon, give me a call and I can pull together your options – you would be amazed at how much money you could save.
Photo by Romain Dancre on Unsplash