If you are approaching the finish line of your mortgage payments, immediately close the browser and begin to celebrate. After all, paying off your mortgage is the biggest dream of every homeowner. Meanwhile, people who have one or more mortgage terms remaining should consider mortgage renewal as an opportunity to negotiate.
The process of a home loan renewal entails redirecting the remaining mortgage balance into a new term that hopefully applies lower interest rates. A mortgage renewal process allows you to
renegotiate the conditions of your previous mortgage contract, including the interest rate, duration of the term and lender.
Your financial capabilities alter over time depending on the job opportunities you take on, further changing your spending preferences. Renewing your mortgage terms give you an opportunity to
align the new terms in accordance with your current needs.
The good news is that the majority of lenders are required to inform people about their terms ending. So all you have to do is keep an eye on your email or mailbox. The form sent by the lender includes data about your current balance along with the payment frequency and amount. If you would prefer adhering to the existing term, you can simply sign the form and send it back. Renewing your mortgage can be viewed as signing onto a new mortgage contract with a new balance.
The majority of homeowners simply reach for their pens at the first sight of a mortgage renewal form. The lack of borrowers’ willingness to renegotiate the mortgage terms deters lenders from
devising better plans and rates. Lenders bank on the fact that homeowners will not undergo the hassle of compiling all documents to switch plans or lenders. The convenience of simply signing
the mortgage renewal form can keep you from saving a lot of money in interest rates.
Unfortunately, if you haven’t been depositing your payments in a timely manner your lender may refuse to renew your mortgage. The same issue stays put if your overall financial situation or
credit score has deteriorated. In such cases, switching a lender becomes a necessity rather than a choice. Make sure to pay your mortgage on time and maintain a healthy financial situation as the date to renew your mortgage comes closer.
A few mortgage plans have an early renewal option that allows you to fixate interest rates before it’s time for a renewal. This feature comes in handy when interest rates are rising and your mortgage term has a few months left.
A mortgage consists of many features and loopholes. Consulting a broker is highly beneficial because they can conduct the research for you and help you acquire the best interest rates available through varying lenders. Simply contacting a broker a few months before your term ends can assist you in undertaking a successful negotiation with your current lender or find a new lender who will give you the best interest rates.
Speaking of the best, Lending Experts are a team of highly qualified and experienced mortgage brokers in Vancouver, BC. Our mortgage brokers keep clients first. Visit lendingexperts.ca to read about us in greater detail. You may also call to speak with us at 604.725.0675.