Is your mortgage up for renewal this year? In 2018, nearly half of Canadians are expected to renew their mortgages. And this increase comes as mortgage rates have been steadily rising. So the big question now is, do you sign on the dotted line or shop around for new rates? Before you make that decision, here are five things to consider.
Your Mortgage Should Meet Your Needs
When it’s time to renew your mortgage, you should take a minute to reassess your needs to determine if your mortgage still meets your requirements. This will give some insight into whether you’re satisfied with your current lender’s services or if it’s time to look for new options. If your needs have changed over time, it’s wise to research what other mortgage plans are out there that may be better suited to your needs, now and into the future.
No Two Lenders are the Same
Before you make any solid decisions, you should look at what other lenders have to offer. There may be better rates and terms out there that may be more beneficial than what your current lender is offering. A mortgage advisor can show you what other options are more suited to your needs.
There is More to Consider Than the Rate
There’s a lot more to a mortgage than just the rate. There are terms in the contract that you should also take into consideration before making a decision. If you’re not familiar with all of the conditions, it’s best to have a professional go over these with you to ensure you’re making the right decision.
Negotiation is Key
The rate you are being offered by your lender is only a starting point for negotiations. A mortgage advisor can help show you all the discounted rates that are available, so you have more options and more negotiating power. If they are not willing to negotiate, you will have all the research you need to choose a better mortgage plan with a new lender.
Make Sure You Understand the Fees
Breaking out of your mortgage may come with a penalty. To figure out if it’s worth terminating your current agreement and capturing a better rate, it’s best to talk to an advisor who can calculate all the expected fees and compare the overall cost savings of taking on a new rate.
At The Mortgage Advisors, our team of trusted advisors has helped Canadians get lower rates to meet their financial goals. So when your mortgage renewal date is due, and you’re trying to figure out whether to renew or not, know we are here to help walk you through the mortgage process step-by-step and find you the best rates for you.