Skip to main content

When your Mortgage is Up for Renewal 


When the Term of Your Mortgage is About to Mature.
 
When the term of your mortgage is about to mature, most lenders will mail out their renewal agreements a few months before the maturity date. 85% of Canadians auto renew with their lender just because it’s simple. This can mean that 85% of Canadians are paying too much for their mortgages because in a lot of cases that rate is above what you might have received by allowing a mortgage broker to review your situation.
By obtaining a pre-approved mortgage, i can guarentee your rates up to 120 days before your mortgage comes due. This protection helps you in case there is a rate increase in those last couple of months prior to the mortgage maturity. This could save you thousands of dollars down the road.
When your mortgages is due for renewal, it is a great opportunity to make sure you have the right mortgage for your current needs. As the mortgage is fully open on maturity, it is the perfect time to pay down your mortgage. Whatever you can afford will have a significant impact on your mortgage and your ability to be mortgage-free sooner. It is also a great time to consider a more frequent payment method, such as bi-weekly or weekly to further reduce your mortgage.
Also, if interest rates have decreased since your last mortgage, you may want to consider keeping your payments at the same level as this will also allow you to pay down the principal at an accelerated rate. 

 
Should You Switch Your Mortgage?   
 
To switch your mortgage means to move your mortgage from one financial institution to another. There are several reasons why people switch their mortgages, but the primary reason is that another financial institution is offering a better interest rate of mortgage terms. Another reason people switch is because they were unhappy or unsatisfied with their current lender.
When you switch your mortgage the new financial institution transfers your current mortgage balance and the remaining amortization period on that mortgage. Your new mortgage payments are then based on these numbers and the interest rate offered by the new institution. If you had a 40 year amortization previously, you will be reduced to 30 years. Refinancing and switching are two different things however; each financial institution has its own policies with regards to the amount you can refinance without incurring fees. You also have an option of doing a switch with a total refinance but you will be subject to fees similar to that incurred with registering a new mortgage. If it is just a switch then many lenders use title companies that will do the paperwork at your home. Make sure you’re clear with your mortgage broker on what you want to do.
If you are simply switching your mortgage at renewal time to another finanacial institution then you should not be subject to any fees or payout penalties. If you decide you want to switch and increase your mortgage amount or lengthen your amortization period, then the mortgage would have to be re-registered and you would be sugject to additional fees.(i.e legal fees, appraisal fees, etc.)

You should start the process between 90-120 days before your renewal.
 
For mortgage information about mortgage renewals and switches, contact me, Ariana Leroux, by visiting my website at www.arianaleroux.com.

Ariana Leroux
Licensed Mortgage Agent
With The Mortgage Group Alberta
phone: 780-437-5225
mobile: 780-952-4087
fax: 877-489-8126
email: arianaleroux@gmail.com
arianaleroux.com

Popular posts from this blog

Are You Paired With the RIGHT Mortgage Product & Rate? Did you even think to ask?

That seems to be a question that not a lot of people ask. "Am I in the right mortgage product & rate?" Everyone is so caught up in getting the lowest rate possible, that it is a race to the bottom instead of stopping and looking at the full picture. According to a survey done by CIBC and posted with The Toronto Star , Canadians do not think they will mortgage free till 57! Now is this due to people getting mortgages later in life; due to purchase price and down payments?? ... yes I believe partially this is the case. However I think the bigger problem is no long term thinking is being done. With the boom in 2007, it was the big push to "refinance your life" into your mortgage; so cars, boats, quads, credit cards, etc all build into your mortgage to give you a lower over all payment.... but does this help reduce mortgage debt? There were also those 40 year amortizations and mortgaging over 100% of your homes value. None of these things help anyone to pay o...
Read more

Budget 2025 & the Alberta Mortgage Market: What Buyers and Homeowners Need to Know

  The federal government has released its 2025 budget, and while the focus is largely on long-term housing supply, there are several key items that matter for buyers, homeowners, and investors in the Edmonton-area markets — including Spruce Grove, Stony Plain, St. Albert, Leduc, Beaumont, and Sherwood Park . Below is a clear, Alberta-specific breakdown of what changed, what didn’t, and how this affects mortgage decisions over the coming year. 1. The Rate Environment: What It Means in Alberta The Bank of Canada recently reduced its policy rate to 2.25% , bringing mortgage prime down to 4.45% . This matters for our markets because: Variable-rate mortgages are becoming competitive again. Payment shock for renewals may ease slightly. But—and this is key— we do not expect dramatic further rate drops due to ongoing inflation pressures. Bottom line: Alberta borrowers now have more flexibility. Variable may start to make sense again, but choosing between fixed and variable...
Read more

Divorce, Separation & Mortgages in Canada: What Happens to the House?

Separation and divorce can feel overwhelming. Questions start piling up fast: Who keeps the house? Can I qualify for the mortgage on my own? How does a spousal buyout work? What happens to our joint debt? Can child support or spousal support count as income? What if I’m the one paying support? What if I don’t currently have a job? What if we don’t have 20% equity in the home?  When emotions are high, housing uncertainty can become one of the most stressful parts of the process. The good news? There are mortgage solutions available in Canada specifically designed for separation and divorce situations — and most people do not even know they exist. As a licensed mortgage broker, this is something I help clients through every single week. The mortgage side of separation does not have to be the hardest part. The Biggest Question: “Can I Keep the House?” In many cases, yes — it may be possible. Canada’s mortgage insurers, including Canada Guaranty , CMHC , and Sagen , offe...
Read more