You should also access your current financial situation and any future financial prospects that you have before renewing your mortgage with the current lender. If you are faced with mortgage renewal here are some things to have in mind.
What are your financial goals
Your financial goals should be put to mind when choosing a mortgage rate and terms. Before you go ahead and sign that renewal check whether it aligns properly with what your financial goals are for the future. If not it is time to get a new lender.
Know your mortgage needs
Will you be getting money that you can put to your mortgage repayment in the next term? Does your budget allow you to increase the mortgage repayments? There are so many considerations to have in mind before you can renew the mortgage.
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Renew in the last thirty days
The law requires you to renew your mortgage before the end of the term. It is recommended that you do so in the last thirty days of your term. However you should have done some research to determine whether the offer your current lender sends to you is the best rate in the market. If it is not then you should talk with a mortgage broker Kelowna to determine what other lenders are providing and which other options you have.
If you do not like the rate and want to continue working with the current lender, you can also negotiate the rate before you sign. You may also use a broker to negotiate the rates for you so do not forget to work with a mortgage broker during mortgage renewals.
To switch or not to switch?
If you find that there are lenders offering better rates in the market then you are faced with the question of whether to switch lenders or not. A switch will offer you better rates which will save you lots of money in the long run. Discuss with your mortgage broker to determine whether the switch is worth it in the long run or not.
There are also some fees associated with a switch from one lender to the other which include; an appraisal fee, discharge fee, assignment fee, and some legal fees. You might need to have all that money in cash or some lenders might pay some of the fees for you if you switch to use their services.
Kelowna Mortgage renewals provide an appropriate time for you to choose a better lender and re-evaluate your financial situation. You should be proactive to be able to save on your mortgage payments over time. It is recommended that you talk to a mortgage broker to help you get the best lender before mortgage renewals.