Updated: January 2023
Is it that time already to be renewing your mortgage? It seems like you just purchased your dream home yesterday!
Whether you purchased your home in Grimsby, Hamilton or St. Thomas, you made the smart move of getting into the market, but time flies and that five year mortgage will be maturing soon.
Hopefully you are still a few months away from your renewal date, so that we can explore your options and you have time to take advantage of the following tips to make sure that you get the best deal when renewing your mortgage.
Why not simply Renew your Mortgage with your existing Lender?
Simply renewing your mortgage with your exiting lender is definitely the easiest and the option that your current lender wants you to take. In-fact they count on you taking their renewal offer no questions asked. Just sign and return the renewal offer, it can’t get any easier!
Don’t do it!
You are in the driver’s seat. You mortgage contract has ended and you are free to do what you want with it. The renewal offer could be the best deal for you, but don’t count on it. Lenders love it when you trust they will give you the best deal! Even if your Hamilton Mortgage Broker arranged the original mortgage and it was the best deal at the time, it doesn’t mean that the lender’s offer will be the best deal at renewal time. Make sure you know your rights!
Weigh your Renewal Options
There is no such thing as loyalty being rewarded by lenders, whether it is a bank, trust company or credit union. They will all charge the highest rate that they think they can get away with. With a renewal you are dealing directly with the lender and you don’t have your Hamilton Mortgage Broker negotiating the terms like when you originally took out the mortgage.
This is especially true if you secured your original mortgage directly through a bank, they count on this time as an opportunity to charge you a little extra as there is no one advocating on your behalf.
Conduct Plenty of Research and let us Negotiate
Many like to take advantage of borrowers who don’t realize they have the right and the ability to ask for a lower rate or to go somewhere else. The worst offenders are the biggest lenders, the banks.
Your best course of action is to contact your Hamilton Mortgage Broker to have us assess your mortgage at renewal time. We will assess your current situation, your needs, both short and long term, shop the mortgage market for deals and then give you some options in addition to your renewal offer. It could be possible that your renewal offer is the best one and we will advise you of such if that’s the case.
Again, this is another great reason to work with a mortgage broker who will do this on your behalf, and at no cost to you!
As a professional in the industry, I have many tools at my disposal that allow me to quickly and easily search for the best mortgage rates available. I will work hard on your behalf to make sure you get the best deal possible. Remember I work for you, not the bank!
Check the Terms Before You Sign
There is more to consider when you are renewing your mortgage than just the interest rate. You may think you are getting the most competitive rate, but there may be other fees, terms or penalties that make the seemingly “cheap” rate actually lot more expensive. Make sure you review your entire mortgage contract before you agree to sign the document.
There are clearly a lot of aspects to consider when it comes time to renew your Hamilton mortgage, and I am here to help you, every step of the way.
I understand that it can see tempting to just automatically renew your mortgage without doing any research or trying to negotiate a better rate because it may save you some time and some haggling, but with me by your side at renewal time, you will save both time and money, making it a worry-free process!
If your mortgage is up for renewal this year, start early and take advantage of my offer of a “Free Mortgage Evaluation”, give me a call or message me so we can start reviewing your options today, so we can start planning to save you money for tomorrow!