Page 22 - REN_Mar-Apr 2021

10 Things You Should Consider BEFORE

Renewing Your Mortgage

courtesy the Realtor.ca team
any Canadian mortgage holders renew without asking any questions—often receiving a higher rate with
a mortgage product that doesn’t suit their needs. Do yourself a favour, and don’t sign a renewal letter
Mwithout doing your due diligence. Take an assessment of your current situation, put a plan in place, and let
the lenders compete for your business to ensure you receive the best mortgage possible. Here’s what you need to
consider before renewing your mortgage.
1.Put a plan in place

Don’t wait until the last minute to act on your mortgage renewal. Start reassessing your needs well in advance of
your renewal date to make sure you get the best rate and mortgage product for you and your family. The Canadian
Real Estate Association (CREA) suggests planning ahead and reviewing your needs four months prior to your renewal
date. This includes:
• Researching the current market for trends, interest rates, and lenders’ products.
• Educating yourself on the options available, including everything you need to know about reverse mortgages.
• Assessing your current financial situation, accounting for things like savings goals, children’s education, and debt
consolidation.

2. Do your research
Leading up to your renewal date, it’s important to do
your research on products, features, interest rates, and
interest rate trends. It’s also recommended to shop
around and investigate the different lenders available
to you. The Financial Consumer Agency of Canada
website is a great starting point when it comes to
research, offering a wealth of up-to-date resources
including answers to frequently asked questions about
mortgage renewals. Your REALTOR® is another excellent
resource to tap into for advice on what to consider when
renewing your mortgage.
3. Request a lower rate

A simple, yet often overlooked consideration when renewing your mortgage is to negotiate with your current lender
for a lower interest rate. Despite what’s outlined in your renewal letter—which must be sent to you at least 21 days
before your renewal date—you may qualify for a discount. If you don’t ask for a lower rate with better terms, your
“
lender may automatically reintroduce your mortgage at a higher rate than you’re eligible for.
When it comes to negotiating your renewal, tell your lender about offers you’ve received from
competing financial institutions or mortgage brokers—make the lenders vie for your business.

4. Consider this a fresh start
It’s likely a lot has changed in your life since your initial mortgage, or significant events have since occurred that
have an affect on the marketplace. For example, you or your spouse may have switched careers, your children may
no longer live at home, or interest rates may have dropped due to outside factors—according to CREA, interest

22 | REAL ESTATE NOW | denise@BCislandhomes.ca