What does it mean to renew my mortgage?
When you obtain a mortgage with a lender, your contract is in effect for a specific period of time. This is called the mortgage term and it can range from a few months to five years or longer.
At the end of each team, you have to renew your mortgage unless you pay the balance in full. You’ll most likely require multiple terms to repay your mortgage in full.
What happens at time of renewal?
At time of renewal, you have an opportunity to negotiate your interest rate and term with your current mortgage provider, and you won’t need to re-apply.
You also have the opportunity to refinance. This means you are paying out your existing mortgage in order to negotiate a new mortgage loan agreement.
Renewal Time is an Opportunity to Ensure Your Mortgage is Right for You
Explore your options, shop around and make sure your mortgage aligns with your current financial needs and goals. Here are a few things I always ask my clients to consider:
- Does your budget allow you to increase your payments to pay off your mortgage quicker and save on interest?
- Do you need to change your payment frequency?
- Are you able to make additional payments?
- Do you need to consolidate debt and save on interest every month?
- Are you happy with your current mortgage provider?
- What type of insurance do you need?
