Is your current mortgage renewal really the best option for you? Most homeowners in Ontario simply renew their existing lender without considering all their choices.
However, are you leaving money on the table by not checking out better rates, terms, or even other lenders?
Below are the top five key questions you should ask your mortgage broker before renewing. These questions will help you make sure that your mortgage renewal works for your future plans, potentially saving money and stress.
1. What’s the best interest rate you can offer me?
Your mortgage renewal is a key moment to reassess your financial situation, and the first question you should ask your mortgage broker is about the best interest rate that can be offered.
While your current lender might present a renewal rate, it’s worth researching if there is a better option available. Mortgage brokers always have access to a wide range of lenders, thus allowing them to compare rates and find a competitive term that fits your needs.
2. Are there any fees I should know about?
It’s important to ask your mortgage broker if there are any fees to know about. This is because the average homeowner overlooks potential fees when renewing their mortgage and ends up complaining when they add up quickly over time.
Common fees include prepayment penalties, discharge fees, and administrative charges. If you are thinking about paying off your mortgage early or making a lump sum payment, these fees could come into play.
Asking questions about fees enables brokers to explain all potential fees and, in some cases, find ways to reduce or avoid them altogether during the mortgage renewal process.
3. Should I consider switching lenders for better terms?
While it might seem easiest to just renew your current lender, switching to a new lender can sometimes offer better interest rates, lower fees, or more flexible terms.
Mortgage brokers can help you compare options from multiple lenders and ensure that you get the best deal possible. In the long run, this saves you money, either through a lower interest rate or favourable repayment terms.
4. What are my prepayment options?
For homeowners approaching a mortgage renewal, it is important to understand your prepayment options. Prepayment refers to paying off your mortgage loans before it’s due, which helps reduce the overall balance and interest costs.
Lenders often offer options like lump-sum payments, which enable you to pay a portion of the loan at once or the ability to increase your monthly payments.
A mortgage broker plays an important role here, helping to assess the best prepayment strategies offered by lenders and making the right choice that aligns with your financial situation.
5. How can I align my mortgage renewal with my future goals?
If you are saving for your child’s education or expanding your business, your mortgage terms should support those ambitions. Your mortgage renewal window should not only lock in a good interest rate, but also prioritize setting yourself up for financial success.
The best mortgage brokers can adjust your payment structure or find a lender that offers more flexible terms.
Let Us Handle Your Mortgage Renewal and Everything That Comes With It
Homeowners usually feel the pressure of making the right choice during their mortgage renewal process. This is mainly due to the stressful research process, term comparisons, and all the paperwork it requires. The process becomes even harder when you are on your own, trying to understand complex clauses while ensuring documents are filled out and submitted accurately.
At Northwood Mortgage, we simplify the entire mortgage renewal experience and have helped homeowners across Ontario make confident decisions.
Our team explains each step so you understand your options fully, especially prepayment options, and proceed to find better interest rates or even switch lenders for better terms.
We work tirelessly to ensure that your mortgage renewal is as stress-free as possible. Call Northwood Mortgage at 888-495-4825 or contact us online to speak to one of our experienced agents to get started.
