Renewing your mortgage can be a stressful time, but it doesn’t have to be. Whether your mortgage is with a bank or an alternative, such as a mortgage investment corporation, there are some things you should take note of before beginning the renewal process.

Higher Interest Rates at the Time of Mortgage Renewal

Unfortunately, the interest rates in Canada have been on the rise. In the past, you might have been in for a pleasant surprise when it came time to renew your mortgage, and some have begun to expect lower rates upon renewal. The current trends are a different story, however. Mortgage renewal may be a good time to shop around for a different lender. You may want to consider the benefits of choosing a private mortgage lender.

Review Your Financial Situation Before Mortgage Renewal

Prior to renewing your mortgage, you may want to take the opportunity to review and evaluate your current financial status. Before deciding to renew your mortgage with your current lender or a new institution, consider how your finances may have changed. Has your income increased or changed? What other investments do you have? What is your home equity? Have you had any renovations that have increased the value of your home?

Prepare for Stress Tests at the Time of Mortgage Renewal

In January of this year, the Canadian government introduced new rules in the mortgage industry, one of which is the requirement for a stress test. If you are applying for a first-time buyer mortgage or you want to refinance your existing mortgage, you’ll have to qualify under these rules. Because approval under the stress test is contingent on higher interest rates, it can be more difficult to qualify, thus discouraging homeowners from refinancing and allowing banks to jack-up prices when it comes to mortgage renewal. The good news is, private mortgage lenders are generally not under the same constraints, thus mortgage renewal with an alternative mortgage lender might be easier.

Consider the Need for a Home Renovation Loan

If you have upcoming plans for home renovations or minor construction, it might be wise to apply for a home renovation loan at the same time as a mortgage renewal. Consider how it will affect your rates and if the timing is right for you.

Talk to a Mortgage Broker or a Private Mortgage Lender

For some expert advice when it comes to mortgage renewal, talk to a mortgage professional. Brokers and lenders can give you some direction regarding the current market. Get advice on whether to shop around and how to navigate the new regulations.

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