Renewing Your Mortgage

Mortgage renewal is often forgotten about by home owners, but it is very important aspect of your mortgage as you can save thousands of dollars over the term of your mortgage. Renewing, or switching, your mortgage is simply starting the mortgage process from the beginning again. You will close out your existing mortgage for a new mortgage that you are able to negotiate a new interest rate and a new term.

According to Canadian Housing and Mortgage Corporation, 80% of consumers intend to look for a better deal when their mortgage comes up for renewal, but only 30% of all consumers actually do! The main reason for this surprising statistic is that most lenders do not facilitate an easy mortgage renewal process for their clients, often not sending a renewal notice until 30 days prior to the renewal date. In addition, most consumers merely accept the first offer that their lenders send to them without asking any questions. This results in accepting a mediocre offer with interest rates that are higher than ones that other lenders are offering.

However, here at Homeguard, we ensure that you receive the best mortgage out of your mortgage renewal process. Our agents can discuss with you whether it may be the time for you to consider consolidation, increasing, decreasing or re-amortizing your mortgage, or to initiate a low cost switch to an alternative financial institution who may have a rate sale on.

While most lenders will not give you sufficient notice to shop around for the best rates, our agents are able to arrange for an interest rate to be held for 120 days prior to the date of your mortgage renewal. This will protect you if interest rates increase, but will also provide you with flexibility if interest rates fall. In addition, our agents are able to offer you more choice, and access to hundreds of mortgage products compared to most lenders. They have access to a wide variety of lenders including the Canada’s largest banks, credit unions, trust companies and private funds. Because they don’t work for a specific lender you will be sure to receive impartial advice.