Personal Considerations for Mortgage Renewal

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As you prepare for the mortgage renewal process, it's essential to reflect on your current life circumstances and anticipate future needs. Here are some personal factors to contemplate:

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• Have you and/or your partner experienced an increase in income, so you can pay off your mortgage faster?

• Have there been any instances of income loss?

• Are there any upcoming expenses (arrival of a child, tuition payments, new vehicle, etc)?

• Is there a possibility you will be moving during the next mortgage period?

• Do you foresee any windfalls, such as an inheritance or additional income, in the coming years?

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Other Factors to Consider for Mortgage Renewal

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• Are interest rates predicted to increase or decrease in the coming years?

• Are current mortgage rates lower or higher than your existing mortgage rate?

• If you're planning to switch mortgage lenders, what are the costs and fees that may be associated with switching lenders?

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Pros and Cons of Switching Mortgage Lenders

Generally, borrowers switch mortgage lenders for better mortgage products and save money. Here are some factors to consider when switching lenders.

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Pros

• Best time to revisit budgeting

• Great time to ensure the new mortgage fits with your financial plan

• More pre-payment options and flexible terms

• Better mortgage rates

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Cons

• Requalifying

• Documents / Paperwork

• there may be additional fees, such as appraisal fees, admin fees, transfer or assignment fee, or set-up fees

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Renegotiating Mortgage Rate with Existing Lender

Its always a good idea to do research and speak with a mortgage broker before deciding whether to renew with your current lender to switch lenders. It is beneficial to see what mortgage options are available our there, such as what other lenders are offering for mortgage rates, prepayment options, flexibility and other terms for get you a better deal.

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