Your mortgage is renewing. Your options don’t have to stay the same.
A renewal is an opportunity to review your mortgage, compare available options and make sure your financing still fits your goals before committing to another term.
Take a fresh look at your mortgage.
A renewal offer is one option. It may not be your only option.
Your existing lender may send you a renewal offer before your mortgage maturity date. Before accepting, it can be useful to review what has changed and whether another mortgage structure may better fit your situation.
Has your income or employment changed?
Have your debts increased or decreased?
Has your property’s value changed?
Do you need access to equity?
Does your current payment still fit your budget?
Are you planning to move during the next term?
A lot can happen during one mortgage term.
Your next mortgage should be reviewed based on where you are today, not just where you were when the mortgage originally started.
Income
Employment, self-employment, business income or household income may have changed since your mortgage began.
Debt
Credit cards, loans, lines of credit and other obligations may now affect your financial picture.
Credit
Your credit profile may be stronger, weaker or simply different from your previous mortgage term.
Home Equity
Changes in property value and mortgage balance may affect the equity available in your home.
Fixed or variable? Start with your priorities.
The appropriate mortgage structure depends on your circumstances, comfort level, financial plans and the options available when you renew.
Rather than choosing based on one headline rate, consider how the mortgage may fit your broader plans.
Fixed-Rate Mortgage
A fixed rate can provide greater payment and rate predictability during the selected term.
Variable-Rate Mortgage
A variable-rate mortgage is affected by changes in the lender’s applicable variable rate.
Is there something else you need your mortgage to accomplish?
If your property has available equity, renewal time may also be an opportunity to review broader financing needs rather than simply replacing the existing term.
Credit or income changed since your last mortgage?
A change in your financial profile does not mean you should assume there are no renewal options. Traditional, alternative and private lending paths can be reviewed where appropriate.
When a traditional renewal doesn’t fit, another lending path may be worth reviewing.
Private mortgage financing may provide short-term options for borrowers dealing with credit challenges, income issues, debt, mortgage arrears or other situations requiring greater flexibility.
Private mortgages generally involve higher borrowing costs and should be evaluated carefully with an appropriate repayment or exit strategy.
Review before you renew.
Starting before your maturity date gives you time to understand the available paths.
Review
Share your existing mortgage details, renewal date and current financial situation.
Update the Picture
Review your current income, debts, credit, property and future goals.
Compare
Compare available renewal, switch, refinance or other financing paths.
Choose
Review the financing terms and decide which available option fits your plans.
Complete Documents
Provide any documents and information required for the selected lender and mortgage.
Renew or Switch
Final mortgage requirements are completed as the maturity date approaches.
The lowest advertised rate isn’t the only thing that matters.
Mortgage products can differ in their terms, features, payment options, prepayment privileges, restrictions and potential costs.
Understand the rate being offered and how it applies to the mortgage.
Consider how long you expect the selected term to fit your plans.
Review the mortgage’s available payment and prepayment features.
Switching or restructuring financing may involve costs depending on the transaction.
Your renewal deserves more than an automatic signature.
Rosie Figliomeni helps homeowners review their mortgage situation and explore traditional, alternative and private lending options where appropriate.
The goal is to understand what has changed, what you’re trying to accomplish and which available mortgage structures may fit.
Review your options before your next term begins.
Tell Rosie about your existing mortgage and what you want your next mortgage to accomplish.