Is your mortgage nearing its renewal deadline? Being a borrower, you have the opportunity to explore for alternatives that better fit your financial circumstances or to obtain a lower mortgage rate each time your mortgage is up for renewal.
It might not always be the greatest choice for you to go with your current lender when renewing. This blog provides you with crucial information on the best options available for renewing your mortgage, in case your mortgage renewal date is coming up and you’re not sure how to proceed.
The most widespread myth regarding mortgage transfer in Abbotsford is the time-consuming process of transferring lenders that makes it often complex. All you need to do is hire a licensed mortgage broker to do the work for you.
Some tips to follow for an easy mortgage renewal experience include:
1. Consult a mortgage advisor
After pulling your credit just once, mortgage brokers can craft an application and apply for a mortgage on your behalf. They can then shop around for the best rate for you.
2. Start your search early
At least four to six months before the end of your mortgage term, start comparing mortgage rates and speaking with several lenders and mortgage brokers.
3. Look Around Before Signing
The renewal letter that your lender automatically sends you ahead of your renewal date should not be signed before comparing the market rates and other lender offerings. To ensure you are getting a good price, always get in touch with a mortgage broker having a prior experience with renewal.
4. Don’t Limit Your Search
Do some homework on your lender and confirm that you are comfortable with every detail of the agreement. Check prepayment fees and other clauses that may impact your contract and your future financial circumstances rather than focusing solely on finding the lowest rate. An expert mortgage broker can assist you in understanding the advantages and disadvantages of each mortgage contract and offers you receive from different lenders.
5. Credibility Is Essential
The rates you can qualify for when applying for a mortgage are significantly influenced by your credit score. Ensure that you are making timely payments on your loans and credit cards. Before you start shopping around for a new lender, raise your credit score as much as possible.
6. Lower Your Debt
Your eligibility for a better rate will increase with the amount of debt and liabilities you have. Try to reduce your debt at least an year before your mortgage renewal. Wait until after you renew your mortgage if you are considering getting a new mortgage.
Conclusion
The best course of action for borrowers who are getting close to their mortgage renewal date is to inquire about their renewal rate with their present mortgage provider. Present that rate to a mortgage broker, and ask them to see if they can approve you for a better rate with flexible terms.
A seasoned mortgage broker may review your file and provide you with more informed advice on the course of action that makes sense. At Sandhu & Sran Mortgages, we ensure that you receive the best mortgage rates for mortgage renewal in Abbotsford. For more details, schedule a free consultation today.