If you have four months until your current mortgage’s maturity date, most lenders will now allow you to begin the early mortgage renewal process, if necessary. Before making a decision, visit the pages below to learn about the different ways you can try to find a better rate or a different lender without paying extra fees. Use our Renewing Guide to find out more about how the process works, what you should do if your renewal is denied, and when to consider switching mortgage providers.
What to Expect
Start Shopping 4 Months Before Your Term is Up
Consider Your Financial Goals
Outline Your Mortgage Needs
Be Ready to Renew in the Last 30 Days
Make a Decision
Understanding the Process
At the end of your mortgage term, so long as you still owe a balance, you will need to renew your mortgage for another term. And with each mortgage renewal comes the opportunity to assess your current mortgage and compare it to any new financial goals you may have. Your current mortgage provider will send you a renewal slip in the mail that you could easily sign and send back, but if you want to ensure all of your needs are met, we suggest taking this proactive approach with your next mortgage renewal:
Pre-Approval
Meeting Conditions
Funding
Closing
The Approach to Mortgage Renewal
Start Shopping 4 Months Before Your Term is Up
Outline Your Mortgage Needs
-Does your monthly budget have room for you to increase your mortgage payment amount? (If so, review the monthly prepayment options in the terms and conditions.)
-Do you think you’ll receive any bonuses or inheritances that you could put towards your mortgage? (If so, you’ll also want to look at the lump sum prepayment options.)
-Do you think you’ll have the option to pay off your mortgage entirely, in this next term? (If so, consider the prepayment penalties that go with fixed vs. variable rate mortgages.)
-Do you think you will want to borrow more money from your lender during this next term? (If so, you’ll again want to consider the prepayment penalties involved in a refinance, or look at collateral mortgages instead.)
Is there any chance you’ll be selling your home and/or moving in the next 5 years? (If so, you may want a mortgage that is portable or assumable.)
Consider Your Financial Goals
Be Ready to Renew in the Last 30 Days
Make a Decision
Switching providers will require a little more paperwork, but you’ll find that doing so will give you access to better mortgage rates. Just be prepared to submit a mortgage application, as the new lender’s qualifying criteria might be different from that of your current lenders. There may also be fees involved with making the switch, including an appraisal fee to verify your property’s value ($150-$500), a discharge fee ($5-$395), an assignment fee ($25-$300) and legal fees (up to $1,500). Certain mortgage brokers and lenders will offer to pay for some or all of these fees when you bring your mortgage to them, but others won’t so you should be prepared to pay for them with cash.
Hey there, is your mortgage up for Renewal?
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