Mortgage Renewal Ottawa Solutions

Renewing your mortgage is something that most people take for granted, but with some help and a little bit of effort, you can save thousands of dollars. Imagine what you could do with a few extra thousand dollars—a kitchen renovation, a 5-star family trip, a backyard pool—and it all starts with a simple phone call.    

Let me handle the details, shoulder the stress, and worry about the specifics. I’ve done this hundreds of times. I’ll put your mortgage renewal on my mind. You can start dreaming of what to do with the money you’ll save.

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Frequently Asked Questions

When should I consider renewing my mortgage?

You should consider renewing your mortgage when your current term is nearing its expiration date, typically within the last 120 days of your term. This allows you to explore new interest rates from various lenders. It’s a crucial time to review your financial goals, assess your current contract, and consult with me to determine the best option for your situation.

What happens at the end of my current mortgage term?

At the end of your current mortgage term, several options become available. You can choose to renew your mortgage with your existing lender or explore refinancing opportunities with different ones—a mortgage broker can help you decide. This is a critical time to reassess your financial goals, evaluate your current interest rate, and potentially negotiate better terms.

Can I switch lenders at mortgage renewal?

Yes, it’s possible to move your mortgage to another lender at renewal. However, it’s not guaranteed they’ll have better terms and conditions. When your current term ends, you can shop around and explore your options. While there are typically no costs associated with switching lenders at renewal, keep in mind that there may be penalties for breaking the mortgage before the renewal date.

What are the potential benefits of mortgage renewal?

Mortgage renewals offer several benefits:
  • If rates are lower at renewal, you can secure a new interest rate, potentially saving money on your mortgage payments. Keep in mind that the opposite is true if you renew in a higher-rate environment.
  • You can adjust the term length or amortization period to better align with your financial goals.
  • You can switch lenders to access better terms or new features.
  • You can reevaluate your mortgage in light of changing financial circumstances.

    What documents are required for the mortgage renewal process?

    The documents required for the mortgage renewal process may vary by lender and your individual circumstances. Typically, you’ll need to provide proof of income, a statement of your existing mortgage, and information about any outstanding debts or assets. Lenders may also request credit reports.

    Is it possible to make changes to the mortgage during renewal?

    Yes, it’s possible to make changes to your mortgage during renewal. These changes can include adjusting the interest rate, term length or even switching from a fixed-rate to a variable-rate mortgage, and vice versa. You can also consider making additional payments and altering the amortization period.

    How is the interest rate determined during mortgage renewal?

    Several factors determine the interest rate during mortgage renewal. The most significant influence is the current economic conditions, including the market interest rates set by the Bank of Canada. Your lender may also consider your credit score, financial stability, and the terms of your existing mortgage.

    What are the potential costs associated with mortgage renewal?

    There are typically no costs associated with mortgage renewal as long as the changes are made at your renewal date. If you decide to switch lenders, however, there may be a fee to discharge the mortgage from your existing lender.

    Can I pay off my mortgage early during the renewal term?

    When you’re mortgage is in a fixed contract, you can typically pay off an extra 15 to 20% per year without a penalty. If you switch lenders, the same is true. If you renew into an open mortgage, you can pay your entire mortgage off without a penalty.

    What happens if I miss the mortgage renewal deadline?

    If you miss the renewal deadline, many lenders will renew it to a six-month mortgage at a higher interest rate. If you switch lenders during those six months, there would be a penalty. But if you change mortgage products with that same lender during those six months, there typically wouldn’t be a penalty. If you want to switch lenders, you’ll have to wait for the six months to lapse to avoid a fee.

    How can I negotiate better terms during mortgage renewal?

    Negotiating better terms involves a few steps. Start by researching current interest rates and mortgage offers from various lenders. You can take this information to your current lender and express your intention to explore other options. This can often lead to a more competitive offer. Additionally, having strong credit and financial stability can improve your bargaining position. Keep in mind that when you work with me as your mortgage broker, I can negotiate these better terms on your behalf.

    Is mortgage insurance required during renewal?

    Mortgage insurance is typically not required during renewal if you’ve already gone through the initial approval process and obtained the necessary insurance. Mortgage insurance is generally mandatory for high-ratio mortgages where the down payment is less than 20% of the property’s value. Renewal involves renegotiating the terms of your existing mortgage, so if you’ve already met the insurance requirements, it doesn’t need to be reevaluated.

    Can I renew my mortgage if my financial situation has changed?

    Yes. In fact, mortgage renewal is an excellent opportunity to reevaluate your mortgage terms with your new financial situation in mind. If your income has decreased, for example, you can discuss different options with your current lender. Keep in mind that if you want to switch lenders, you’ll have to re-qualify. So, a negative change in your financial situation may make re-qualification more complicated than a positive change.

    Should I consider refinancing instead of renewing my mortgage?

    Refinancing involves replacing your existing mortgage with a new one, often with different terms or lenders. This can be a wise choice if you need to access home equity. Renewing, on the other hand, is an update to your contract, potentially with the same lender. However, you can also transfer your agreement to a new lender with better terms. This option is beneficial if you want to maintain the existing loan structure and don’t want to borrow more money.

    Mortgage Renewal Ottawa

    With a mortgage comes a mortgage renewal.

    In Canada, mortgages are typically offered with terms of up to ten years. When your term is finished, your rate expires and it is time to negotiate a new rate.

    Many Canadians spend a great deal of time shopping around to find a favourable rate when purchasing a property.

    Usually, your lender will reach out to you within 120 days of your renewal with an offer for you. Sadly, the rates offered are not very favourable and many do not invest the same amount of time at renewal shopping around. This results in renewal with their current lender’s less favourable rate offer.

    Many feel their loyalty to a lender will be enough for their lender to proactively offer the best rate and others do not have time or the interest to start the rate shopping process again at each renewal. Lenders can take advantage of this at renewal as they know that 80% of people simply sign and return the renewal offer and documents.

    The Bank of Canada confirmed that those who switch lenders at renewal or those who renew with a broker’s series save more than those who renew directly with their lender.

    Each point saved on the rate counts. A 0.2% savings on a rate, on a $300,000 mortgage, will save you over $2630 over the next 5-year term for example.

    When you are up for renewal you have three main options:

    • Wait for the lender’s renewal offer and complete the renewal with your current lender. This is not advised and may be the most costly option.
    • Shop around options once you are within 120 days to find the best rate available and hold onto it. Once you receive your renewal notice from your current lender, you can then compare their offer to the rate that you have held. An extra benefit to this option is that if rates increase during the 120 day period before your lender sends you your renewal notice, you are protected against any increase.
    • Many times in a rising rate environment, a client will receive their renewal notice from their lender just in advance of their renewal date which unfortunately means the rate offered will be higher than if it was sent out months in advance.

    I hear from many clients that their lender has called them with a “limited time offer” that needs to be accepted right away. Also, they will need you to renew early to take advantage of the offer. This, unfortunately, limits your time to shop around. The offer is usually not very favourable compared to mortgage broker’s options and if you have a lower rate then you can still hold onto it for a few months before you renew, you will lose those months with the lower rate, which can add up.

    Banks and lenders have many ways to help boost profits for their shareholders. Unfortunately, the billions of dollars of profits banks make each year is made up of the fees and rates we pay.

    Next time you’re looking for a mortgage renewal or thinking about making a mortgage switch in Ottawa, I can help. I look forward to keeping more of that money in your pocket at renewal and not in theirs.

    You’re Not Limited to Your Lender

    Many homeowners are under the impression that they are left to the mercy of their bank. This is not the case, and I’ve been happy to negotiate better rates for many of them. When it’s time to sign for a new term, don’t worry – I can provide you with more choices and more freedom. That way, we can finalize renewal terms that work best for you. After all, it’s your home we’re talking about, so let’s see whether staying on or switching are sensible options.

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    Years of Experience

    I’ve been fortunate enough to work with many homeowners from a variety of backgrounds. Some seek renewals on the mortgage for their first home and are overwhelmed by which direction to take. Others are stressed over payments and yearn for better rates. With many years of practical experience as an Ottawa Mortgage Broker and plenty of client success stories under my belt, I’m happy to ease your worries, help you renew your mortgage with care, and deliver true peace of mind. That way, you can continue to enjoy your home – and with fewer headaches.

    Hassle-Free Process

    My approach is very hands-off, alleviating the burden of having to do all the hard work yourself. This is especially important as it can be difficult for homeowners to keep up with market trends and ever-changing lender terms, but I’m here to act as your translator in plain English. If you have concerns regarding your credit score, eligibility for renewal or otherwise, don’t worry – I’m here to ensure you take appropriate steps while getting the most out of your home investment. And, if you need to reach out to me with a question or concern, I’m only an email or phone call away. Your personal details are safeguarded in the strictest confidence, and I take every precaution to provide accurate information when you need it.

    Personalized, Professional Service

    Renewing your mortgage is one thing, but renewing your mortgage under terms and conditions that benefit you as the homeowner? That’s not as common. I’m here to ensure we avoid roadblocks and finalize plans that best align with your budget and long-term goals, made possible by a personalized approach to renewal services. Rather than encourage you to sign right away, my aim is to clarify any grey areas and ensure you fully understand the terms and conditions in front of you.

    Get in Touch

    Getting a mortgage doesn’t need to be a source of stress and anxiety. Connect with me to learn how I can make your mortgage a comfy one.
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    Your mortgage should be on my mind.

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    Don’t come to terms with your upcoming mortgage term – take ownership of it. Let’s work together on a renewal that’s worthwhile and stress-free. Looking forward to getting to know you!