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  • Managing Your Mortgage Renewal

    June 24, 2014

    Renewing your mortgage may seem like a daunting task but it’s also a great opportunity to review your current financial situation and re-evaluate your goals. If the thought of renewing your mortgage seems daunting, you’re not alone. There’s a lot to think about: rates, amortization, payment frequency, and in some cases, penalties. Do you stay with your current financial institution, move to a new one, or use a mortgage broker? A lot of things can impact your decision of where to hold your mortgage; some choose the lowest rate they can find, while others choose an institution where they have a relationship.

    Here’s a list of things you should consider when thinking about renewing your mortgage:

    • Rate is usually a big factor in many people’s decisions. It’s amazing how much you can save when you shop around but buyer beware; some low rates may seem too good to be true. It’s important to read the fine print because many times, there are strings attached.
    • You’ll also want to think about what other benefits you may be offered on top of the rate. How much could a free chequing account save you? Or what could you get back in profit sharing?
    • If you’d like to make lump sum payments, how much can you put down without penalty? Another thing to consider is the flexibility to change your payment amount and/or frequency in case of change of income.
    • If you see yourself moving within the term of your mortgage, consider getting a mortgage with portability features so you can take your mortgage with you when you move.

    If your mortgage renewal is still a while away but you see a lower rate, consider looking into the cost of your penalty if you move over. It generally depends on where you are in your mortgage term and how much your rate will change, but in some cases it can be worth it and save you a lot in the end.

    It may seem overwhelming, and although many look at the renewal process as a stressful time, it is also a great opportunity to review your financial statements and revisit your financial goals – whether you want to pay your mortgage down faster, or refinance to do some renovations or pay for your child’s education.

    Once you’ve done your research, it’s time to start the process! Your financial institution will likely need a copy of your mortgage statement, renewal documents and verification of your income. Depending on when your last property assessment was, it’s possible that you could need to have an appraisal done too. Your Libro Coach can help you determine the best payment strategy for you – whether it’s increasing your payments to become mortgage free faster or lowering your payments to free up extra cash.

    Talk to a Coach or your local branch today and find out how your mortgage can pay you with profit sharing and learn more about the other benefits of a Libro mortgage.


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