Buying a home has extra associated costs, so it only makes sense to research and take steps to ensure you have a good picture of how the entire process works. Keep reading to learn more about various mortgage products and the mortgage renewal procedure.
How mortgage works
A mortgage is a loan by a bank, credit union, insurance company, and many more financial institutions to help you buy or build a home. All these lenders will have different lending terms, and it is best to work with an institution or broker that will offer great options. We are focusing on the process of mortgage renewal and how it is an excellent opportunity for you to negotiate better terms.
What is the mortgage renewal process?
The process of renewing a mortgage offers a couple of advantages, such as reduced interest rates, a shorter mortgage duration, and better contract agreements. You get the opportunity to change the terms per your current financial status, as well as the amount remaining for you to pay back the loan in full. Most lenders are aware of the renewal process and will gladly help you adhere to better repayment conditions based on all necessary factors.
What is different when the mortgage is up for renewal?
Most Canadian mortgages have a contract to run between a couple of years and ten years. The mortgage is only renewable if the lender agrees to renew it and is comfortable with the new terms and conditions that come with the new plan. Usually, you have to respond to the terms stipulated in the renewal document or adhere to the original conditions stated in the first mortgage plan.
Some lenders allow applicants to reach out a couple of months in advance, while others will notify you of the upcoming expiration. Private lenders have different terms on the renewal process, while the federal bank requires that you send the renewal statement at least 21 days before the end of the current term. Work with our Ajax mortgage renewal agent to help you draft the correct terms and provide you with professional assistance to negotiate a favorable mortgage renewal in Whitby.
Benefits of mortgage renewal in Oshawa
Automatic mortgage renewal in Ajax saves you money because the new one will always have better terms. Take time out to get your agent to switch to better plans and interest rates, so you can forgo a lengthy application process and still get a juicy mortgage. We cannot tell you the exact rates, durations, and numbers you will get on your renewed loan, but we are glad to take the stress by doing all the negotiation and calculations.
Combating high rates and fees
Steve Tallo knows of a couple of ways you can fixate on the interest rate before the date of mortgage renewal in Pickering, which means you will have a lot of flexibility to find the best possible mortgage plan. Additionally, some plans typically have lower rates than others, so be sure to consult with us on all three major mortgage types before renewing your current plan. Contact us to book a personalized consultation on the best Ajax mortgage rates.