Dominion Mortgage Pros

When it comes to mortgages, we all know that renewals can be a bit like going to the dentist – necessary, but not exactly something we look forward to. However, unlike dental visits, which might leave us with a mouth full of novocaine, mortgage renewals can actually be a golden opportunity to enhance our financial situation. So, let’s chat about mortgage renewals and some important things to consider so we can tackle this process with confidence.

The Basics of Mortgage Renewal

First off, let’s talk about what a mortgage renewal actually is. In Canada, when your mortgage term comes to an end – and typically, this can be anywhere from one to five years – it’s time to renew the mortgage. Think of it as a lease on your home. Just as you wouldn’t sign a new lease without doing your homework, we shouldn’t just roll over to our lender’s new rates without a little investigation.

Here’s a fun statistic for you: According to the Canadian Mortgage and Housing Corporation (CMHC), roughly 45% of Canadians do not shop around when it comes time to renew their mortgage. It’s like going back to the same dentist without ever getting a second opinion about your dental health—yikes!

Timing is Key

When preparing for your mortgage renewal, timing is everything. We recommend starting your renewal process at least 4-6 months before the end of your term. Why? Because this gives us time to compare rates, negotiate with lenders, and consider whether we should be looking at different mortgage products altogether.

Did you know that even a 0.1% difference in interest rates can lead to thousands of dollars in savings over the life of your mortgage? Yes, please!

Be An Informed Consumer

Before signing on the dotted line for your renewal, we should consider some key factors:

• Current Market Rates: Interest rates fluctuate and can greatly impact our payments. By working with an Edmonton mortgage broker, we can get insight into both fixed and variable rates.
• Lender Loyalty: If we’ve been with the same lender for a while, they might want to keep us happy. This could translate into loyalty incentives! However, that doesn’t mean we should automatically take their offer without seeing what’s out there. We can leverage our existing relationship to negotiate better terms.
• Additional Costs: When renewing, we should ask ourselves if we want to increase the loan or make it a smaller one. If we need to borrow more, we should break down how that will impact our overall debt.

Refinancing vs. Renewing

Sometimes, when we’re thinking about renewing, we might discover that our personal circumstances or market conditions may lead us to refinancing instead. Refinancing is like switching gears on a bike – it can help us navigate the terrain better.

• Typically, refinancing means paying off our existing mortgage and getting a new one, often to access equity, lower interest rates, or switch from variable to fixed rates.
• It’s important to work with a mortgage professional, like us at Dominion Mortgage Pros, who can guide us on the difference, pros and cons, and help determine the best route.

The Role of a Mortgage Broker

Why should we consider partnering with a mortgage broker? In a world where we are bombarded by choices, mortgage brokers act like our trusty guide through the financial wilderness.

Benefits include:

• Access to Multiple Lenders: Unlike banks, we can check the offerings of various lenders for you.
• Market Knowledge: We know the ins and outs of the current Canadian mortgage landscape and can find a deal that suits our needs.
• Negotiation Skills: We can haggle for you, often leading to better rates or terms.

In Conclusion

As we approach our mortgage renewal, let’s remember that it’s an invaluable chance to reevaluate our financial landscape. With the right information and approach, we can make a renewal process that’s as smooth as a fresh cup of coffee on a Monday morning!

So, reach out to us at Dominion Mortgage Pros to help navigate through the mortgage fog and ensure we’re making decisions that serve our financial future well. The more informed we are, the more confident we will feel—like a knight in shining armor ready to take on the mortgage dragons of the world!