If you were to ask experienced mortgage brokers in Ottawa, such as Ottawa Mortgage Services, you will learn that you must renew your mortgage at least once before paying it off. As the term mortgage renewal implies, it is the process of re-evaluating your mortgage’s outstanding balance. And most importantly, it involves renewing it for another term at a new rate, which is hopefully lower than before.
There are instances when people pencil their maturity date onto their calendars to know when their mortgage term ends. However, if you didn’t do the same, you will know it’s time to renew when you receive a renewal slip in the mail from your current mortgage provider.
While you may wait for your mortgage provider to send you your renewal slip, there is a better way of navigating your mortgage renewal process. Read on to learn the top three mortgage renewal tips to help you:
Tip #1: Renew Your Mortgage Early
You might think that you have a few months more before the maturity of your mortgage, so you won’t bother applying for a renewal just yet. However, it will be best if you start to shop around early.
It’s possible to negotiate with your current lender as early as 120 days before your maturity date. The best thing about renewing your mortgage early is that in case you can’t negotiate a better offer from your lender, you have a lot of time to look for a new one.
Tip #2: Negotiate for a Better Mortgage Rate
Once you receive your mortgage renewal slip, you will have to pay for its convenience. You may no longer have any choice but to do so, and that’s often a tactic used by certain lenders. It would also help you if you knew that mortgage providers only discount their posted rate on a renewal slip with the lowest possible rate.
Due to these circumstances, it’s best to try negotiating your mortgage renewal to get a lower rate. Don’t be like others who are too afraid to try asking for an adjustment to their payment terms. In case your lender cannot or will not offer you one, you have your choice to shop around and switch providers within your renewal window.
Tip #3: Keep Track of Your Financial Goals
It’s crucial to review your financial goals before you consider signing your mortgage renewal slip and eventually send it back. Doing so will ensure that your current provider offers what you need.
For instance, if you have a mortgage term of five years now, your renewal slip will likely be fixed for another five years. Good for you if you’ll stay in that property for that amount of time. Otherwise, you may consider looking for a mortgage term that is a three-year fixed rate instead.
Final Thoughts
It’s easy to renew a mortgage with your current lender, but signing a renewal slip and sending it back may not be the best option for you. If you consider following these three tips at mortgage renewal time, you may be able to make better choices and get a better deal.
If you need help with your mortgage decisions, get the best lender like the Ottawa Mortgage Services that offers the best mortgage refinance rates in Ottawa. We provide mortgage agent services for first-time homebuyers, commercial agents, and self-employed individuals. Contact our experts today for all of your needs!
