Page 24 - REN_Mar-Apr 2021

9. Switching lenders equals more work
As mentioned above, switching lenders may result in additional fees, and it requires additional research and legwork
on your end. As renewing your mortgage with a new lender is considered a new mortgage altogether, you must go
through the application process again. This means proving your income and having your credit checked, so it’s
important to weigh your options carefully before making the decision to switch lenders.

10. Aim to keep your payments the same

If your original monthly payment was manageable at the higher rate, it’s advised to keep it the same after renewing
your mortgage. Given the interest rate is likely to drop, having the same monthly payment means you’ll pay off your
mortgage sooner and secure your financial security.

Remember, resting on your laurels can cost you thousands of dollars when it comes to renewing your mortgage.
Don’t wait for your renewal letter and don’t let your lender automatically renew without doing your due diligence—
be proactive and take action months in advance of your renewal date. g

24 | REAL ESTATE NOW | denise@BCislandhomes.ca