If you still owe a balance at the end of your mortgage term, you will either need to pay off the remainder or apply for a mortgage renewal. When you renew your mortgage, you have the option of choosing to switch to a different mortgage lender. Here are some tips to make sure the process goes as smoothly as possible.
When to Start the Mortgage Renewal Process
You can begin shopping around for a different mortgage lender or begin the renewal process with your current lender approximately four months before the end of the term; this is an excellent opportunity to find what lenders are offering what, and how to better negotiate the terms of your renewal.
Reviewing Your Mortgage Renewal Needs
During this time, you should evaluate how your situation has changed regarding your financial goals and mortgage needs. Are you looking to move within the next five years? Is your family growing? Does your budget allow for higher monthly payments? Will you need to borrow more money from your mortgage lender? Are you satisfied with the services offered thus far? Once you ask yourself these questions, you’ll have a better idea of what to do when it comes time for your mortgage renewal.
Renewing with Your Current Mortgage Lender
If you decide to remain with your current lender, the process is rather simple. They will send you a mortgage renewal offer in the mail which you can choose to sign, or you can sit down with them to negotiate better rates and express any concerns you might have.
Switch to Another Mortgage Lender
Switching lenders is not quite as simple, but it’s the best way to access to better mortgage rates, especially if you are unsatisfied with the service offered by your current lender. Keep in mind that switching to a private mortgage lender usually means you will not have to pass the stress test again, whereas switching to a different bank does, and it could end up being more costly than it’s worth.
Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email info@awcapital.ca.
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