The end of your mortgage term brings opportunities you might not be aware of. Yes, signing to renew your mortgage with your existing lender is easy, typically requiring just a signature. And applying to switch your mortgage does entail 1) completing a new mortgage application and 2) providing all the required documents to verify your financial position. But considering the potential benefits, it’s worth taking a look at what might be available to you and starting the conversation in advance.
Get a Better Rate
Are you aware that when you receive notice that your mortgage is coming up for renewal, this is the best time to shop around for a more favourable interest rate? At renewal time, it is easy to shop around or switch lenders for a preferable interest rate as it doesn’t break your mortgage. Interest rates are expected to come down as we move into the New Year. Taking some time to reach out to me and shopping the market could help save you money, and help you make the most of the equity you may have in your property.
Consolidate Debt
Renewal time is also a great time to take a look at your existing debt and determine whether or not you want to consolidate it onto your mortgage. For some, this means consolidating your holiday credit card debt into your mortgage, for others it could be car loans, education, etc. Regardless of the type of debt, consolidating into your mortgage allows for one easy payment instead of juggling multiple loans. Plus, in most cases, the interest rate on your mortgage is less than you would be charged with credit card companies.
Start on that Renovation or Buy Another Property
Do you have projects around the house you’ve been thinking of completing? Renewal time is a great opportunity for you to look at utilizing some of your home equity to help with home renovations for that dream kitchen, updated bathroom, or you could even utilize it to purchase another property.
Change Your Rate Type, Add a Home Equity Line of Credit, Reduce Your Payments
Looking to change your existing mortgage ? Perhaps you’re finding that your variable-rate or adjustable-rate mortgages are fluctuating too much and you want to lock in. Alternatively, maybe you’d like to switch to a variable rate as interest rates start to level out. You can also utilize your renewal time to take advantage of a different payment or amortization schedule to help pay off your mortgage faster, or alternatively, to reduce your payments.
Change Your Lender
Perhaps a different bank has a lower rate or a mortgage product with better terms for you. A mortgage renewal is a great time to switch to a different bank or credit union if your needs have changed.
Regardless of how you feel about your current mortgage and what changes you may want to make, if your mortgage is coming up for renewal within the next year, or if you simply have questions, please don’t hesitate to reach out. I’d be happy to discuss your situation and review any changes that would be beneficial for you to reach your goals; from shopping for new rates or accessing the equity in your home to cover expenses or investments. Together we can review your options now and set you on your path for future financial success.
Adapted from DLC Marketing
Image Credit: Nine Kopfer, Unsplash