Tips for Renewing Your Mortgage
(NC) Is your current mortgage term coming to an end? If you still owe money on the mortgage, you will need to renew it. The process is easier when you know the steps to follow.
1. Review your mortgage renewal statement
A federally regulated lender like a bank must provide you with a mortgage renewal statement at least 21 days before the term ends. The statement must contain the following information:
- the balance or remaining principal at the renewal date
- the interest rate
- the payment frequency
- the term
- any charges or fees that apply
The renewal statement must also specify that the interest rate will not increase until your renewal date. Beware that the renewal of your mortgage term may be automatic. If your lender plans on automatically renewing your mortgage, it must say so in the renewal statement.
2. Review your mortgage needs
Make sure you have the right mortgage product. For example, some mortgages allow flexible payments, which can help you pay off your mortgage sooner. Look for features like being able to:
- increase payments
- change payment frequency
- make additional payments
3. Shop around
You do not have to accept the interest rate in your renewal letter. And, you don’t have to renew your mortgage with the same lender. Start shopping around before your mortgage term ends. Contact various lenders and mortgage brokers to see what interest rates and mortgage options they can offer. Tell your lender about the offers from other lenders.
4. Switching to another lender
If you decide to switch your mortgage to another lender, the new lender will need to approve your mortgage application. There may also be costs associated with switching lenders, such as setup and appraisal fees. Ask if your new lender is willing to pay for some or all your costs to switch.
Learn more about renewing your mortgage at canada.ca/money.
www.newscanada.com