In a Manulife survey in 2011, almost 2 out of 3 respondents failed to compare mortgage products and rates from various lenders when their mortgage came up for renewal. Not knowing what your options are could costs you thousands if not tens of thousands of dollars in extra interest and fees.
Here are some things you should know about mortgage renewals.
Mark your calendars.
Most Canadians have a 5 year mortgage term and a lot can change in that time. From marriage and kids or job and lifestyle change, it’s no surprise that mortgage renewal dates are the last thing on your mind.
But it’s important to make a note of this date in your calendar so you can get a head start and make sure you are in a good position to renegotiate your next mortgage term.
Know what your overall financial goals are
Mortgage products have different features. Some allow you to prepay without penalty, others allow you to port your mortgage to a different property if you sell before your term is up.
It’s smart to have an overall idea of what you want to accomplish financially and in your life overall before committing to a new mortgage term.
If you are unsure about the next 3 to 5 years, maybe you want to look at mortgage products that have a slightly higher rate but lower penalties if you need to break the mortgage term. Penalties can be up to tens of thousands of dollars.
Do the math… or let me do it for you.
Mortgages are complicated. Put yourself in a better position by being informed of your choices. There are over forty mortgage lenders across Canada.
And much like how a bank offers different credit cards with different fees and options, mortgage products have different features and options.
If you want sound advice so you make a smart decision for your future, talk to me.
I would be pleased to assist you or any friend or family members who are in need of a mortgage.