Each year in Canada, a substantial number of mortgages come up for renewal. For many homeowners, the prospect of renewing a mortgage at rates significantly higher than what they’re currently paying can be daunting. However, with careful planning and the right approach, you can manage this transition smoothly and potentially save money in the process.

Here are some key steps you can take to handle your mortgage renewal effectively:

Discuss Your Plans with Your Broker

Before renewing your mortgage, it’s crucial to have a detailed conversation with your mortgage broker. Share your plans and intentions regarding your home. For example, if you plan to stay in your current home for the long term or if you’re considering moving soon, this information will help your broker tailor their advice to your specific situation. Rember, the rate is only one part of the mortgage.

Consolidate Unsecured Debt

If you have unsecured debt, such as credit cards or personal loans, consider consolidating it with your mortgage. This strategy can increase your cash flow by reducing your monthly payments and potentially lowering your overall interest costs. Your mortgage broker can help you explore options for integrating this debt into your mortgage.

Look for the Best Rates and Options

Interest rates and mortgage options can vary widely. Take the time to shop around and compare rates from different lenders. YA broker like me can help you find competitive rates and suitable options that align with your financial goals without multiple credit checks and you doing all the legwork.  This step is crucial to ensure you’re getting the best deal possible.

Consider Increasing Amortization

Increasing the amortization period of your mortgage can lower your monthly payments, making them more manageable. However, keep in mind that this may result in paying more interest over the life of the loan. Discuss the pros and cons with your broker to determine if this option is right for you. Remember amortization ca be easily adjusted with increased payments or frequency of payments. You can easily adjust this down with simple hacks.

Start Early

Don’t wait until the last minute to begin the renewal process. Rate holds are typically available for up to 120 days, giving you a window to secure a favorable rate before your current mortgage term ends. Starting early ensures you have ample time to explore your options and make informed decisions. With most lenders the allow rate drops ensuring you get the lowest rate before your renewal.

Don’t Sign the Renewal Offer Without Consulting a Broker

Before signing any renewal offer from your lender, it’s essential to consult with an unbiased mortgage broker. They can provide valuable insights and help you understand whether the offer aligns with your best interests. Their expertise can guide you in making the most advantageous choice for your financial situation. I often help clients with their renewal and give them tools and resources to secure their best option even if that option is to stay put and negotiate with their current lender.

Mortgage renewal doesn’t have to be a stressful process. By taking these steps and working with a knowledgeable broker, you can navigate the renewal period confidently and ensure that you’re making the best decision for your financial future. I would love to help you in this process and make sure you are supported throughout out this journey. Make an appointment today to discuss your options.