Renewing Your Mortgage
Renewing a Mortgage in Kingston
Why Renew Your Mortgage?
The goal of almost every borrower is to pay the least amount of interest and pay off their mortgage as quickly and cheaply as possible. This means ensure that at renewal of your mortgage, you look around to determine what your options are and if there is a better deal for you elsewhere.
When a mortgage has reached its maturity date, the existing lender will mail out a Renewal Statement which offers a new interest rate and new mortgage terms.
In order to find the best mortgage, borrowers should consult a reputable mortgage broker who has access to many different mortgage lenders and who can compare interest rates, terms and prepayment options.
Here are some terms and conditions you should know:
Rate
Most mortgage lenders will provide an extremely competitive rate to borrowers who are switching lenders and pay the legal fees, and appraisal costs in order to switch.
Terms
Often, mortgage renewal is a time when new mortgage terms can be sought after and negotiated. For example, having the ability to prepay a larger amount of mortgage without penalty can save you thousands over the life of your mortgage.
Amortization Period
As a borrower pays down their mortgage they also shorten their amortization period (number of years it takes to pay off the mortgage). When a borrower renews their mortgage, they must be careful not to restart the amortization clock back to 25 or 30 years, for example. Since financial institutions are in the business of making money, it’s no surprise that this particular trap often goes unnoticed.
Looking to renew your Mortgage?
Are there any fees to use a broker for your renewal?
There are NO broker fees to renew or switch your mortgage to a better interest rate and better terms.
Documents Required For A Mortgage Renewal
A Renewal Agreement from the existing lender
Documents Required For Financing
Do Lenders Pay Your Legal Fees and Mortgage Renewal Costs?
Yes, they typically do. Paid legal fees & appraisal costs through a switch program (conditions apply on switch/transfer products as they must be eligible as a true conventional switch).