Mortgage renewal time can be busy for a Hamilton mortgage broker like me. It can also be an exciting and sometimes stressful time for homeowners. It’s a time when you can look to getting yourself a better mortgage package with lower rates. The market was a very competitive one, with homeowners being spoiled for options where mortgages were concerned. However, because of the new mortgage stress test in Canada, the power is back with lenders. If you’ve received your renewal letter from your lender saying it’s time to renew, or know that your mortgage renewal is coming up in the next few months, here are some tips to help you make the most of it.
Move or Stay?
I’m not talking about moving home, rather moving mortgages. When you get your letter, it will have your new interest rate and monthly payments listed on it. Some may choose to forego having to go through another mortgage stress test and just sign off on their letter, staying with their current lender. The problem with this is that you are giving up your ability to negotiate for a better deal.
If you choose to use one of our Hamilton mortgage brokers, we can offer you many different options that your current lender might not be able to. That simply be a better rate, or if you are looking for additional funds some of our lenders will even forego the stress test, which your bank will not be able to do.
If you mortgage is coming up for renewal it would be well worth shopping around for a better mortgage package. This is why it’s good to speak with our Hamilton mortgage brokers. They have access to a wider pool of offers that you just won’t come across on your own.
If you choose to look for a new lender, be sure to discuss your needs and long term goals with your mortgage broker so that they can arrange an ideal mortgage solution for you.
Also, bear in mind that your credit score will determine what rate you are offered. If your score is better than it was when you got your last mortgage, chances are you will get a better rate option. But if your credit score has lowered since then, you could be stuck with the same rates or higher.
To avoid this, make sure that you are always making your payments on time and haven’t let any excess debt accumulate. Also, it’s a good idea to pay off any credit cards before renewal time hits. By eliminating any debts like these, there is less of a chance of lenders seeing you as a risk and more of a chance that you will be given a better rate.
Mortgage renewal time doesn’t have to be so stressful. Planning ahead is key, so if your renewal time is still a way off, start stabilizing your credit now in order to get better options when it does come time to renew. Either way, call one of our Hamilton mortgage brokers today to help get you started!