Sometimes it’s time to move. Sometimes it’s time to move mortgages.
And did you know you don’t have to automatically renew your mortgage with the bank? When your mortgage is up for renewal, you can leave your current institution and move your mortgage to someone else.
Castle Mortgage brokers can check with the bank and cross-reference their current offer with all the other lenders we have in our network to secure a better rate for your mortgage. If a better program or rate does exist, or if your financial needs have changed over time, you could end up with a mortgage that saves you hundreds or even thousands of dollars.
Is it Time to Improve Your Mortgage Fit?
Think of your mortgage renewal as a scheduled “check up” for the health of your mortgage. Legally, your mortgage lender must provide you with the opportunity to renew at least 21 days before your mortgage term ends. We suggest checking in around four months before the end of your mortgage term to examine your options.
But you don't even need to wait for your renewal date. You can begin to look for new types of plans with lower interest rates that will benefit you at any time. It’s all about addressing your overall financial health and we can help. We can get the legwork done quickly and accurately, giving you the confidence to either accept their terms, negotiate for a better rate, or switch out in favour of a mortgage product that serves you better.
One thing to note, if you decide to change mortgage providers before your renewal date, you may need to have a home appraisal done. You may also be required to pay a pre-payment penalty in order to facilitate the switch.
It’s All About the Best Rate
Any time you’re thinking about making changes to your mortgage, it’s usually a signal that there’s more that your money could be doing for you. We understand it’s not about resenting your mortgage provider - it’s about wanting to be sure you are getting the best rate.
Here is how to get it:
Ask for a better rate.
Renewing your existing mortgage often seems like the safest and easiest thing to do. The hardest part is to pause for a moment and ask for a better mortgage rate. There are usually lower rates available from other lenders and a little negotiating can go a long way. If a mortgage lender isn’t willing to lower their rate at least once, it may be time to shop around.
Ask for early renewal.
If you express a desire to transfer your mortgage, your lender may offer you a chance to renew early. Depending on how close you are to your renewal date, they may waive penalties or fees that sometimes come with making changes to your mortgage mid-plan. They may even offer you a better rate in order to cement your decision to stay with them. This rate can sometimes match or beat competitors, but without doing considerable research, it is hard to know for sure if you are getting the best rate. A professional mortgage broker can find out the best rates currently available in the marketplace quickly and thoroughly. You can avoid the stress of constantly wondering, “Did I really get the best rate out there?”
Watch for lower interest rates.
Interest rates do fluctuate and you may want to consider making an adjustment to your mortgage well in advance of your renewal. Checking in with a local mortgage expert will give you access to a qualified opinion on the market. If rates are trending upward or downward, our experienced team can give you the best possible advice that will put you in good standing for where the markets are at.
At any point, your broker at Castle Mortgage can analyze your individual mortgage plan and help you come up with a strategy that could save you money over the long term.