Mortgage Renewal Options

Congratulations on your maturing mortgage...now let us help you get a better rate!

If your mortgage renewal is fast approaching then you’ll soon be at an important financial milestone. Now's a great time to look at the many innovative options and competitive rates available. Lenders send out renewal forms just prior to renewal dates to those with good payment histories, with about 70% of homeowners sending it back without asking any questions. In today’s hectic world, that can be the easiest and best route, but you should ask yourself some questions before you sign on the dotted line. This could be an important moment of opportunity.

Maybe your mortgage needs have changed. This is the time to decide. For example, you may want to consolidate high interest debt in with your mortgage or you may want to tap some of your home equity for a renovation project? Or maybe you reconsidering a cottage or vacation property. Are you confident you will get the best rate at renewal?

Having multiple lenders compete for your business is a great way to ensure you get the best rate for your situation. We deal with multiple lending institutions, including major banks, credit unions, trusts and other national and regional lenders, which means we can put significant negotiating power behind finding the best mortgage to fit your specific situation.

 

How A Spruce Grove Mortgage Renewal Can Help You!

Mortgage renewal is imperative. But renewing your Spruce Grove mortgage with the same lender or provider is not mandatory. You can always look for another lender if you choose to gain. In most cases, mortgage renewal can help you but only if you choose the right provider. At times, it is better to renew with the same provider. On other occasions it is wiser to look for another lender. There are pros and cons of both and you should weigh them to make the best choice.

Mortgage payments are often the biggest chunk of expense for most families. A slight tweaking of the mortgage, its term or rate of interest can have a substantial impact on anyone’s finances. The impact can be positive or negative. In here, we look at the benefits that highlight how a mortgage renewal can help you.

A Spruce Grove Mortgage renewal allows you to get a lower rate of interest. Once you are done with the locked period of fixed rate of interest, you can choose to go ahead with the same provider and get fluctuating or floating rates of interest or you can choose another provider. While you choose to renew your mortgage with the same provider, you should see if the rate of interest is being reduced. If not, you can look for another provider. However, you should see if that provider has favorable terms.

A major advantage of mortgage renewal is that you can lower the monthly repayments or you can pay off your Spruce Grove mortgage sooner. When the rate of interest goes down, you can keep the repayment the same as you have been paying all this while. This will reduce the term of your mortgage repayment. If you choose to take advantage of the lowered rate of interest and keep the term same then you can reduce the monthly payments. Just a hundred dollars reduction in monthly payments can offer a breather, especially for those families who are hard pressed for spare funds.

Mortgage renewal also allows you to lock in a reduced rate of interest for a new term. Many homeowners like the idea of fixed rates of interest and they are really scared of floating rates. If you are one such homeowner then you should seriously consider mortgage renewal with a provider just to keep the interest rate fixed for a certain term.

It would be unwise to state that mortgage renewal is always good because there are some risks or disadvantages. However, if you are aware of the cons then you can guard yourself against them. While renewing a mortgage you should check if there are prepayment charges or fees. Such charges will make you pay more than what you would save which is never desirable. If you intend to sell your property or don’t see yourself staying for the full term of the renewed mortgage, then you may not see the savings in reality. They would only exist on paper. When you fix a new interest rate and lock it, you should consider the fact that floating rates may keep going down and in such a scenario you would be paying much more with the fixed higher rate of interest. 

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