What Are The Differences Between Mortgage Renewal And Refinancing?
Canadian mortgage renewal is a lot like refinancing in other countries, but it works a little differently. The first thing you need to know is that a mortgage term, or how long a lender holds a loan, is different than the amortization period. This is why it’s so important to work with a Toronto mortgage broker to know what your options are. If you have a 5 year mortgage term and a 30 year amortization period, you’ll have to renew your mortgage after 5 years or pay it in full. You can even renew at the end of the amortization period depending on your lender.
Know Your Mortgage Terms
You’re going to need to know your mortgage terms before the term comes up for the end. That means you need to work with a Toronto mortgage broker like us to understand your mortgage BEFORE you get one. We’ll be able to explain all the tough stuff so you don’t have to worry about it. You’re going to need to know how everything works when it comes to mortgage renewal, so don’t go it alone. There’s help out there and we can help you get it.
Find a New Lender
Once your mortgage comes up for mortgage renewal, it’s time to know if you need to get a new lender. After working with your Toronto mortgage broker you’ll be able to know how much of a great deal you’re getting. If not, you can just move forward and find another. We’ll be able to help you compare the deal you received from your present lender with the deals you could get with others. The best thing is you won’t have to pay until you’ve decided to move to a new lender; just because you’re exploring your options doesn’t mean you have to go with someone else.
Settle Your Mortgage in Full
You’ll also have the option to settle your mortgage in full. Most people can’t afford to do this so they decide to renew. You’ll want to work with your Toronto mortgage broker (can we suggest us?!) to know if this is the best thing for you. If you can’t afford it, consider renewing it with the same lender or a new one. If you can afford it, however, make sure you do pay it off. It’ll help your credit and save you thousands of dollars in interest.
Renew Your Mortgage with Your Current Lender
If the deals from other lenders just aren’t working out and settling your mortgage isn’t an appealing idea, it’s time to think about just sticking with your current lender. That doesn’t mean you can’t get a better deal with them, you should always try. Make sure you work with us as your Toronto mortgage broker to know what kind fo deal you could be getting. This way you’ll be able to save on your mortgage renewal even if you have to stay with the same lender.