You’ve already taken out a mortgage once so this isn’t your first rodeo, but renewal comes with a new set of challenges. These tips will help make sure that when it’s time to renew, you’re not only prepared, you’re in control.
- Get started early
Don’t get caught rushing to renew your mortgage – have your renewal date marked on your calendar and be aware when it’s coming up. Renewal’s an opportunity to re-evaluate your mortgage, but it can take some time to do this properly. Don’t let a time crunch rob you of that opportunity.
At Affinity, our policy is to contact members about their renewal 120 days before their mortgage term ends. This is an early reminder for you, and it gives you the chance to renew early so, if interest rates are on the rise, you can potentially lock your mortgage in at a lower rate.
- Think outside your rate
Interest has a big role in deciding how much your mortgage loan will cost, but it’s not the only factor. When renegotiating your mortgage, consider your total amortization period, whether it’s a fixed or variable rate loan and how much flexibility you’ll have on your repayment schedule. All of these things could help you save money over the life of your mortgage.
- Your situation may have changed
You’re in a different place than you were at the start of your last mortgage term – especially if that was years ago. You have equity built in your home, you may be earning more money, have less debt and a better credit rating. These things could qualify you for a better rate. Your needs can also change. If you have more money coming in, you may want the flexibility to make more frequent prepayments. Before renewing, take the time to carefully consider what you need from your mortgage.
If you’re looking to renew your mortgage and you have questions, call our Contact Centre at 1.866.863.6237.