When your mortgage term ends, it is both a moment of uncertainty and a time to reassess your current financial standing. Every homeowner in Ontario faces this at some point, and knowing what to do next is important. 

This blog will guide you through the considerations of a mortgage renewal and how working with a mortgage broker can get you the best rate in Ontario’s real estate markets.

Why Mortgage Renewal Is a Critical Decision

Mortgage renewal should be crucial to you as it affects your financial future. Let’s provide an example: 

  • Your current mortgage term is expiring, and you are comfortable. However, with the instability of interest rates, you may be paying more than you should. By exploring other options, you can find a better rate that could save you thousands of dollars over the next few years.

It is also important to note that you are locked to your current lender, which is why you should invest time to shop around and find terms that align with your future finances.

The Benefits of Using a Mortgage Broker for Your Renewal

Consulting with a mortgage broker for your mortgage renewal can provide several advantages. They simplify the process and help you find the best deal tailored to your needs. Specifically, they provide the following services:

  • Access to multiple lenders: A mortgage broker connects you with various lenders and deals, giving you more choices than just sticking with your current lender. This access can help you find the best rate, potentially saving you thousands over time.
  • Expert advice: Brokers don’t offer a one-size-fits-all solution. Instead, they provide tailored advice based on your unique financial situation, whether you have had a change in income, taken on more debt, or want to pay off your mortgage faster.
  • Simplified process: Managing negotiations and paperwork can be overwhelming. A broker handles these tasks for you, acting as your personal mortgage shopper and making the entire process easier and less time-consuming.

Look Beyond Interest Rates

Interest rates are the percentage of a loan amount that a lender charges a borrower for the use of their money. They are typically expressed as an annual rate, and they influence the overall cost of borrowing and the monthly payments a borrower must make.

While lower rates are usually enticing and often considered a priority during mortgage renewal processes, homeowners should look beyond them.

At Northwood Mortgage, we assess your financial situation, including income changes, existing debts, and future financial changes, and let our team of expert mortgage negotiators broker better terms, which could save you thousands over the life of your mortgage.

Additionally, we specialize in both prime and subprime mortgage renewals, thus making them available in complex situations. Prime refers to borrowers with a strong credit history and financial stability, while subprime refers to borrowers with weaker credit profiles who may face higher interest rates and tougher loan conditions due to perceived risks.

Contact the Mortgage Renewal Professionals

Remember, the peace of mind that comes with having a professional broker to guide you through Ontario’s mortgage renewal road path can make all the difference. 

If you’re curious about how much you could save or what mortgage renewal options are available, we are ready to explore various possibilities with you. 

You can call Northwood Mortgage at (416) 969-8130 or contact us online to find the right options for your needs.