Given the large financial commitment of a mortgage, it’s surprising that so many homeowners sleepwalk through the mortgage renewal process and don’t look at all their options in the marketplace. Many accept whatever their lender offers or just have a short negotiation to shave a few points off. 

While it’s tempting to choose what is easiest, it’s so important to have a mortgage expert give you a second opinion and start working for you as early as 6 months prior to renewal. Here’s why: 

  1. With access to many lenders and mortgage options, I can make sure you are being offered the best rate and mortgage possible. 
  2. If you have enough equity in your home, you may be able to move high-interest debt to your lower-rate mortgage, improving cash flow and saving on interest. Renewal is the perfect time to do this. I can run the numbers to see if this strategy makes sense for you.
  3. Having a good credit score is important if you want to switch your mortgage to a new lender for a better deal. You have control over your credit score, and may want to discuss credit improvement strategies. 
  4. Taking on new debt or an employment change prior to renewal can affect your ability to move your mortgage to another lender. We can discuss the potential impact of changes to your personal situation. 
  5. If you need to free up cash flow for specific needs or life situation, a 30-year amortization might be an option for you to consider (20% or more in equity required). 

At renewal, you can renegotiate everything pertaining to your mortgage – with no penalties – which means this is an important moment of opportunity. So as soon as you hear from your lender about your mortgage renewal, get in touch for an important second opinion!