Mortgage renewal is an important financial decision that is equally as important as selecting your first one. At the time of renewing your mortgage, it is important to remember that you are in a stronger financial position, because you have enough equity grown in your house by that time. By decreasing your principal loan balance you are in a much stronger position to negotiate. Approximately 60% of borrowers simply sign and send back their renewal that is first offered to them by their lender without ever shopping around for a more favourable interest rate. This can often result in higher rates and a mortgage package that may not fit with your current needs.
It is a good idea to start shopping for a new term between three to six months before your current mortgage term expires. Normally lenders send your renewal letter very close to the time that your term expires and this does not give you enough time to shop for a better mortgage rate through a another lender. This means that you need to be tracking your own mortgage term timeframe and know when it is time to start shopping for a good mortgage renewal rate. Consult a mortgage broker. They’ll make sure you have the latest product and mortgage information to help you make the right decision for you.