Forum

Renewal of a Mortgage

People are in confusion when to renew the mortgage!
Early renewal features typically let you lock in a new rate two to four months ahead of when your mortgage is due to mature.
By locking in earlier, you minimize the risk of adverse rate movements. But in return, you pay a premium to the best available rates, and you'll lose all benefit if rates drop before your term is up.

The benefit of renewing early depends largely on the rate you're offered. For example, you can find fully featured five-year fixed rates at 3.29 percent or less. If your lender is letting you lock in 90 days early for 3.39 percent – a mere 10 basis point premium – that's worth considering. On the other hand, if your lender were pitching a "one-time-only" opportunity to renew early at 3.59 percent or more, that warrants more scepticism.

So, before renewing a mortgage, make sure you get the best mortgage rate and never take a risk on your mortgage. Professionals could help you better in mortgage renewal process in Canada
( http://www.mortgagesmortgages.ca/mortgage-options/renewal/ ), as they have access to all the industry updates and rate updates.

  1. callisy4 months ago

    After shopping around, considering your financial goals, outlining your mortgage needs and receiving a mortgage renewal offer from your current lender, it’s finally time to make a decision. The last question you’ll need to ask yourself is who is offering you the best mortgage rate and product: your current lender or another lender? If you decide to stay with your current lender, you can either choose to sign and return the mortgage renewal offer they sent in the mail, or sit down and try to negotiate a better offer in their offices. By law, your current lender has to send you a mortgage renewal statement at least 21 days before your term is up, but they will usually mail you a renewal offer for their lowest posted rate that is good for the 30 days before maturity. By extending that offer for 30 days, you’re protected from any potential rate increases during that time. However, you should have done enough research by now to know whether or not it’s actually the best mortgage rate on the market – and if not, you’re perfectly within your right to try to negotiate. However, even if you sit down with your current lender to negotiate their offer, it’s unlikely they’ll be able to give you the best mortgage rate. So, in your last 30 days, you should also make an appointment with a mortgage broker, to discuss what other lenders can offer you.


Please Log in to reply