Before mortgages in Ontario can be paid off, it usually needs to be renewed at least once. You’re probably one of the roughly 40% of Canadian homeowners who have a mortgage and must renew it at the end of their term unless you have the means to pay off your balance in your initial mortgage term. 

A mortgage renewal takes your existing mortgage balance and renews it for a new (and presumably lower) term at a new (and hopefully lower) interest rate.

If you haven’t already marked your calendar with the maturity date (the end of your mortgage term), you’ll know it’s time to renew when your existing mortgage provider sends you a renewal form. 

You can sign and return the slip, including a new mortgage rate and term offer. Taking a more proactive approach, on the other hand, is in your best interests. Here are some of our best mortgage renewal advice and where to find a mortgage application in Ontario:

Think About Your Present Financial Objectives

Think about your financial objectives before signing and returning your mortgage renewal form. You want to ensure that your present lender can give you a mortgage that meets your requirements. 

If you currently have a five-year fixed-rate mortgage, the renewal slip will likely be for another five-year fixed rate. If you think you’ll be able to stay in your house for that long, it’s fantastic. 

However, if you know you’ll be downsizing or moving to a new place in the next few years, you might want to search for a three-year product instead.

Other financial objectives include how additional funds (such as an inheritance) may affect the pre-payment alternatives you desire. Consider whether refinancing your mortgage or obtaining a home equity line of credit (HELOC) to gain access to equity. Knowing what you want from a mortgage should help you decide which lender and product to go with.

Begin Looking For Bargains As Soon As Possible

How quickly can a mortgage be renewed? You may be a few months away from reaching the end of your mortgage term, but they say the early bird gets the worm! This is primarily true when it comes to renewing a mortgage.

While your current lender will most likely send you a renewal note in the last 30 days of your mortgage term, you can normally begin negotiating as soon as 120 days before your maturity date. Find the maturity date on your mortgage contract (it may also be viewable through online banking) and count back 120 days on a calendar to make sure you’re prepared.

If you can’t get a better deal from your present lender, now is to start thinking about transferring. 

Although you may not be able to transfer your mortgage until your actual renewal date, this provides a mortgage broker time to provide you with mortgage renewal guidance and identify the best option. It also gives you time to prepare the documentation, so you aren’t caught off guard at the last minute.

Request A Lower Mortgage Rate

By giving a quick and easy option to renew your mortgage with those small mortgage renewal cards, lenders make it far too easy for you to answer the issue of should I renew my mortgage now? They know you’re pressed for time, and you’ll pay for the convenience. 

On average, mortgage providers only give a discount off their quoted rate on a renewal slip to their existing customers. However, this isn’t the lowest rate available, even from your present lender. Furthermore, there are frequently lower rates available from alternative lenders.

Conclusion 

With your current lender, renewing your mortgage can be simple and quick. However, signing and returning that renewal slip will not earn you the best mortgage rate or deal. You’ll receive the greatest lender, terms, and rate for your current financial condition if you follow these suggestions, conduct your homework, and deal with an Ontario mortgage brokerage who can give you mortgage renewal information and ideas.

Contact Mills Financial Group, an Ontario mortgage brokerage, if you need assistance with home financing. We are a multi-award-winning Canadian mortgage brokerage with over 800 skilled and accredited mortgage brokers, agents, and associates who provide residential and commercial mortgage services.