HOW TO IMPROVE YOUR
A mortgage renewal is when you are coming to the end of your term.
Your rate is protected until a mortgage maturity date, at which time you have the option to renew your mortgage with your current lender or the option to transfer your mortgage to a better rate lender at maturity.
We would like to shop for mortgage renewal rates about 5 months before your mortgage maturity date. A rate lock happens once we are at 120 days.
Most lenders will not send out their letter of renewal until 30 days before maturity. If rates rise you lose, so best to do your homework early and lock a rate with Bennett Capital.
RENEWING YOUR MORTGAGE
Many Canadians will sign their renewal notice with their existing lender without negotiation or research. Do not renew your mortgage without allowing us to shop our 57 lenders, as it may cost you unnecessary interest.
It is a great time to consider whether you should add a home equity line of credit for future renovations or investing. This is the time to do it! There are no costs to do a transfer or mortgage renewal at maturity.
However, there are mortgage renewal options. There are costs to refinancing at maturity which is when you take more money or stretch your amortization.
If you are moving the exact amount at maturity and not stretching your amortization, then the move is free! We can explore options for doing both so you have options to decide at maturity which way you want to go.
It is best to do a review about 5 months before maturity, so call us or book an appointment. Let’s review to get this started early to make decisions on the best route to move forward!