If you’re a homeowner in Canada, you may have heard the term “renewing your mortgage.” But what does it mean to renew your mortgage, and why is it important? In this blog, we’ll explore what mortgage renewal is and what you need to know about the process.
What is Mortgage Renewal?
Mortgage renewal is the process of signing a new mortgage agreement with your current lender. When you first obtained your mortgage, you likely signed a contract that specified the length of the mortgage term, which is typically between one and ten years. When the term is up, you’ll need to renew your mortgage if you want to continue borrowing from your current lender.
Why is Mortgage Renewal Important?
Renewing your mortgage is an important part of the homeownership process, as it ensures that you continue to have access to the funds you need to pay for your home. Failing to renew your mortgage can result in defaulting on your loan, which can lead to foreclosure and the loss of your home.
When Should I Renew My Mortgage?
Most mortgage agreements have a set term length, typically between one and ten years. You’ll receive a renewal notice from your lender a few months before your current term expires, which will give you time to review your options and make a decision about whether to renew your mortgage or look for a new lender.
What Are My Options When Renewing My Mortgage?
When it’s time to renew your mortgage, you have several options. You can choose to renew your mortgage with your current lender, or you can look for a new lender who may offer better rates or terms. Here are a few things to consider when deciding which option is right for you:
1. Check Current Mortgage Rates: It’s important to review current mortgage rates to ensure that you’re getting the best deal possible.
2. Negotiate Your Rate: When you receive a renewal notice from your lender, they may offer you a rate that is higher than what you’re currently paying. Don’t be afraid to negotiate for a lower rate, especially if you have a good credit score and payment history.
3. Consider Other Lenders: It’s always a good idea to shop around and see if other lenders are offering better rates or terms.
4. Review Your Mortgage Terms: Take a close look at your current mortgage terms to ensure that they still meet your needs. If your financial situation has changed, you may need to adjust your mortgage terms accordingly.
Final Thoughts
Renewing your mortgage is an important part of homeownership in Canada. It’s important to review your options and make an informed decision about whether to renew with your current lender or look for a new lender. By taking the time to research and negotiate your mortgage terms, you can ensure that you’re getting the best deal possible and can continue to enjoy your home for years to come.
Contact Us to help you get your mortgage renew at Dominion Lending Centres Better Rate Mortgage.
Written By Jay Vyas, Mortgage Agent at Dominion Lending Centres Better Rate Mortgage