Mortgage Renewal: It's Worth Your Time To Shop Around

Your mortgage term is coming to an end, and that means it’s time to renew! But before you just accept that renewal offer from your current lender, let’s talk about what your options are, when to start looking into your renewal, and why you should never just settle for whatever offer lands in your mailbox.

What Are Your Mortgage Renewal Options?

When it comes time to renew, you actually have several options to consider. You don’t have to stay with your current lender (unless you’re really happy with them). Here’s what you can do:

1. Stay with Your Current Lender: If you’re happy with your current lender and the offer they give you, you can simply renew your mortgage with them. This is the easiest option, but it doesn’t always mean it’s the best option.

   
   

2. Shop Around for Better Rates: If you’re open to making a change, shopping around can help you secure a better rate or more favourable terms. Even a small reduction in your interest rate can save you thousands over the life of your mortgage.

   
   

3. Switch Lenders: If your current lender isn’t offering the best deal, you can always switch to another lender at renewal time. In fact, switching lenders could get you a better rate and more flexible terms, especially if your financial situation has changed since you first got your mortgage.

   
   

4. Change Your Mortgage Terms: If your circumstances have changed (maybe you’ve paid down a chunk of your mortgage or your income has increased), this is a great time to reassess your mortgage terms. You could switch from a variable-rate mortgage to a fixed-rate one, or shorten your term to pay off your mortgage faster.

   
   

When Should You Start Looking Into Your Renewal?

The answer is simple: start looking at least 4 to 6 months before your renewal date. This gives you plenty of time to shop around, compare rates, and avoid any last-minute stress. Many people assume they can leave the renewal process until the last minute, but getting ahead of it ensures you’re not rushed into making a decision.

Why You Shouldn’t Just Take the Offer in the Mail

Let’s be real: the renewal offer you get in the mail from your current lender might look tempting, but it’s not always the best deal. Lenders often send out standard renewal offers with rates that may be higher than what you could get by shopping around.

Here’s why you shouldn’t just settle:

• You Could Get a Better Rate Elsewhere: Mortgage rates are always changing, and your current lender might not be offering you the best deal available. Other lenders may have lower rates or better terms.

  
  

• Loyalty Doesn’t Always Pay Off: Many people assume their current lender will offer the best deal because they’ve been with them for years. However, lenders often reserve their best rates for new customers or those who are actively negotiating. If you don’t shop around, you may be paying more than you need to.

  
  

• You May Miss Out on Better Terms: The renewal offer from your lender may not be tailored to your current financial situation. Whether you want to pay off your mortgage faster, lower your monthly payments, or switch to a different type of mortgage, you may have more options than your lender is offering you.

  
  

• You Can Negotiate: The offer your lender gives you isn't set in stone. You can use offers from other lenders as leverage to negotiate a better deal for yourself.

  
  

Let’s Make Sure You Get the Best Deal

Your mortgage renewal is a great opportunity to reassess your financial situation and make sure you’re on the right path. Don’t just accept the first offer that comes your way - take the time to explore all your options and get the best deal possible.

Ready to get started? Reach out today! I’ll help you understand your options, compare rates, and ensure you’re making the smartest decision for your financial future.