Mortgage Renewal is not something one looks forward to, especially if it is your first time handling everything on your own. The fact is that the mortgage renewal process is not as difficult as it is made out to be. Following the right procedure and getting good guidance is all you need to wade through mortgage renewal, easily. What is needed is to get a lower rate so it can save you a lot of money. For this, the one thing you must do is reserve a rate or lock in a rate if you still have time to go for your renewal (say 120 days). This saves you from rates which may go up in the near future or around the time your mortgage renewal is due. Something you must avoid is - giving in to pressure from your existing lender, who may try to prevent you from shopping around for lower rates. Take your time, shop around and lock a rate that serves your interest the best.
Mortgage renewal can be done in five easy steps.
Analyzing the goal
In order for mortgage renewal to be a fast and painless affair, but also good one, one needs to go through a few things in their mind. One needs to think if they plan to move homes in the coming five years, or if any big purchases are lined up like a car or a second home, and if any other major expenses are due such as renovations or investments and the likes. These answers will help arrive at what kind of mortgage you should take up. Start with existing lender You have to begin somewhere, so beginning at home (with your existing lender) is a good idea. Ask your current lender about the renewal rates they are offering. If this rate is not a low one, it is an expected situation. You can tell the lender you are looking at some savings and will shop around in order to get a better rate than what is being offered. The situation may turn if you say so and they may offer you a better rate than quoted to be in the game. Contact a mortgage broker A mortgage broker will take all your pain away and shop on your behalf with various lenders to get you the best rate available. You already know what your existing lender is offering and you can assess if you are getting a better rate with the help of the mortgage broker. Make the application If you are saving a lot by changing your lender and like the terms of the new lender, go ahead and make the mortgage application, which the broker can submit on your behalf to the lender offering a better rate. Finalization When the application is approved by the new lender, you need to read the contract and then sign on the dotted line. Make sure the terms are what were discussed. After you sign it, the approval is sent back to the lender with some documents that should be at an arm's reach with you. The mortgage is transferred from existing lender to new lender as all legal work is done on the parallel. The legal fee is usually included or not on the basis of your earlier discussions. For more information on mortgage renewal do not hesitate to reach out to LendX Financial in Brampton, Greater Toronto Area.
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