When it comes to mortgage renewals, we’re often at a loss. Do we stay with the same lender? Do we switch from a variable to a fixed rate? Most importantly, how do we save money?
It is possible to save money while renewing your mortgage if you follow our three simple rules:
- Don’t let your renewal date creep up on you:
If you remain passive with your mortgage, it will be automatically renewed and you won’t save any money. Stay up-to-date with your mortgage so that your renewal date doesn’t seem to come out of nowhere. You can start looking into renewing your mortgage a couple months before your renewal date. You don’t have to wait until the last minute. The longer you wait, the less chance you have of saving money. Your lender will send you a notice right before your renewal date but don’t wait until you get that letter. The sooner the better!
- Figure out what you want:
This sounds easy enough but before you renew your mortgage, you need to decide on what’s important for you. Are you looking to renovate or retrofit your home? Do you need extra funds to send your children to university? Are you drowning in revolving debt? Is your current lender meeting your needs? Will you be moving in the next few years and need to break your mortgage? If you’re having trouble making ends meet, you need to take that into consideration when renewing your mortgage. If your current lender doesn’t seem to care about your financial well-being, maybe it’s time for a change. Don’t stick with your bank or current lender because you want to remain loyal. In the end, if you’re not happy, you’re not going to save any money when you renew your mortgage.
- Meet with a broker:
Even if you plan on staying with the same lender, you should meet with a mortgage professional. Mortgage brokers know mortgages. They are on the frontlines, so to speak, and understand the ins and outs of the business. When you ask a broker mortgage questions, they have the answers. They also work on your behalf, so you don’t have to do anything except say “yes” or “no” to the different mortgage renewal packages they present to you. Furthermore, when you work with a broker they will make sure you get the best deals and rates to suit your financial situation; thus, you save money when you renew.
Even if you plan on staying with the same lender, you should meet with a mortgage professional. Mortgage brokers know mortgages. They are on the frontlines, so to speak, and understand the ins and outs of the business. When you ask a broker mortgage questions, they have the answers. They also work on your behalf, so you don’t have to do anything except say “yes” or “no” to the different mortgage renewal packages they present to you. Furthermore, when you work with a broker they will make sure you get the best deals and rates to suit your financial situation; thus, you save money when you renew.
If you’re unsure about the renewal process and how you can save money, contact us. At Northwood Mortgage, we are here to help.
