Make the Most of Your Mortgage Renewal
Did you know that more than 70% of Canadians sign back their mortgage renewal without shopping around for a more affordable rate (source: CAAMP)?
This implies that many homeowners are paying more interest than necessary simply because they didn't take the time to review online mortgage offers. Don't just blindly renew with your current lender because they say their rate is the best. The mortgage renewal period is the perfect time to refinance your payments and take advantage of competitive rates.
You never know, a few minutes comparing rates could save you thousands of dollars on your mortgage interest payments.
What are my mortgage renewal options?
When you receive your mortgage renewal statement in the mail, make sure you take the time to review the offer closely. If you feel that the lender isn't offering you the best mortgage rate, don't worry – you can always take your mortgage business to another lender.
Deciding to move your mortgage during the mortgage renewal period is perfectly acceptable, and can often be done without any financial penalty, so long as you are not breaking your mortgage term prematurely.
It's important to note that rules for switching your mortgage may vary provincially, and the legalities involved will need to be made clear to you. Here at Family Lending, we highly recommend that all of our clients consult with a professional mortgage broker prior to renewing their mortgage in order to ensure they understand the renewal process and have the opportunity to review all of the available rates.
Costs associated with switching mortgage lenders
There are some costs associated with switching mortgage lenders, especially if you try and go it alone. These costs can include:
1) An appraisal fee
Every lender needs to know what the fair market value of your home is prior to finalizing a mortgage agreement. Appraisal fees can be anywhere from $150 to $300, depending on the home.
2) A discharge statement fee
Every lender charges a discharge fee if you decide to leave them at the end of your mortgage renewal term. This can costs another $150 to $300 depending on the lender.
3) Legal fees
A new mortgage will need to be registered, which requires legal council. This cost can be anywhere from $600 to $1,500, depending on what you are having drawn up.
If you're concerned about the cost of switching a mortgage, don't be! Many lenders will jump at the chance to cover a portion, if not all, of these costs in order to gain your businessand make the mortgage switch as stress-free as possible.
Don't make a hasty mortgage renewal decision.
Mortgage lenders count on the fact that most homeowners are too busy to inquire about lower mortgage renewal rates. Luckily, online mortgage companies, like Family Lending, provide homeowners with a number of quick and easy tools that are designed to make the entire process more manageable.
Family Lending deals with a wide network of lending institutions in order to find you the best possible mortgage rates. As an independent company, it's our goal to provide you with the best possible mortgage to fit your unique needs.
If your mortgage is up for renewal, don't just "mail it in" and agree to whatever rate your current lender is offering. Contact Family Lending today to refinance your rate and save money!
