Your mortgage payment is probably your biggest monthly expense. It is therefore in your interest to try and get the best possible offer. To go through the various options available to you, whether by contacting your current institution, going online or working with a mortgage broker, make sure you give yourself time.
Take the lead
A few months before your mortgage matures, you will receive a renewal offer from your creditor. Renewal can be quick and easy, by signing to accept the offer.
It may be tempting and convenient to accept the offer made. However, it is in your interest to contact your institution to confirm whether it’s possible to get an even greater discount.
It can take a long time to change institutions
If you decide to change lender, you should anticipate more time. To request a new mortgage, you will have to provide various documents to your mortgage broker, including proof of income, proof your property is insured, etc. The transition period can take a few weeks. It’s a good idea to start as soon as possible and not wait until just days before your mortgage matures.
Think about asking for a rate guarantee
Were you offered a good rate? You should know that you can ask for a rate guarantee, which guarantees the offered rate for 90 days. Even if interest rates rise, you can get the rate offered. If market conditions result in a lower rate, you can benefit from the lower rate.
A good time to refinance
Are you thinking about refinancing? The renewal of your mortgage is the best time to ask. Refinancing your mortgage allows you to access liquidity to, for example, finance a project. Because this represents a change to the terms and conditions of the contract, you may have to pay a penalty. However, by refinancing with the renewal of your mortgage, you can avoid penalties.
If you decide to change your institution when renewing your mortgage, you can do so at no cost.