Category Archives: Mortgage Renewal

At mortgage renewal time is important to keep in mind that all financial institutions are about making a profit. Unfortunately, according to the Canada Mortgage and Housing Corporation (CMHC), between 60-70% of Canadians ignore this at mortgage renewal time and sign the letter and mail it back without taking time to review their options. A bank isn’t going to automatically drop your interest rate from 6 to 5% just because your credit score has improved. This is why it is so important to shop around before you renew. If you want to make sure you are getting the best rate you can, it is a good idea to contact a mortgage broker. Brokers have access to the lowest rates, and once you have their quote, you can call the original financial institution and notify them that if they do not …

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Here are some mortgage renewal facts to help clear up some of the common misconceptions about mortgage renewal: You do not have to renew your mortgage with your initial lender. You are free to hire a mortgage broker to help you find the best rate and terms for your new loan. Your initial lender must inform you of the decision to renew or not to at least 21 days before the mortgage expiration date. Any discounts you have received for adding life, disability or home insurance or an additional line of credit from your lender or its affiliates won’t automatically transfer or be renewed. Likewise, if you have transferred your portfolio to reduce your payments, this will not automatically be renewed or transferred to the new loan. A lender cannot pressure you into purchasing a financial package as a condition …

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If the date of your mortgage renewal is drawing near, it is time to consider the options. You want to make sure that your new mortgage is going to meet your present and future wants and desires. Unfortunately, most lenders are actually counting on that fact that homeowners are too busy to ask questions about rates and terms and renewals offer little to the buyer in terms of a better rate. Just as with your first mortgage, a renewal is a time for you to ask questions, do research, enlist a broker. In short, this is the time for you to shop around for the best rates and options. Since interest rates are low, now is the perfect time to find a better rate. In fact, many financial institutions will switch your mortgage to a better rate option at little …

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