Is your mortgage coming up for renewal? Get a second opinion before signing the form. Over 90% of mortgage holders just sign, and the result can be: higher interest rates, a mortgage product that does not suit your interests and future grief.
Mortgage renewal is a great time to establish your 5 year plan, set mortgage goals and make your mortgage work for you.
- You want to renew/switch your mortgage to another lender who will give you a better rate.
- You may want to switch from an aggressive amortization to a more manageable payment program.
- You may want to increase the mortgage to pay for renovations, bills or other
- You may want to change to a variable rate or to a fixed rate
- A mortgage review never hurts and its FREE
What happens legally when you switch?
Most people are unaware of the legal effect of switching lenders. When you renew you are essentially starting the process again. A lawyer will register the details of your new mortgage and will remove the details of your old mortgage.
The lenders count on 90% of renewers just signing the form and mailing it in — they are not forcing you — but they are preying on human nature to embrace convenience. The question you need to ask is “Will this be right for me?”
Can I suggest:
Anytime you get close to renewal, it is time to evaluate how well the mortgage worked for you. Ask the questions:
- Were the payments ok?
- How long do I intend to live in this property?
- Do I want to increase my mortgage payments?
- Was I happy with the “fixed”/ “variable” type of mortgage?
- Would I like to add a line of credit to my mortage?
- How is my debt load – is it increasing or decreasing?
- What changes/ renovations would I like to achieve in this home?
- Will this home meet my families needs in the days to come?
At mortgage renewal, there is no penalty to break your mortgage, so it is a great time to look at all your options!