You can fail to reach the end of your mortgage term due to your financial circumstances. Many mortgage borrowers can face the same issue. However, you can negotiate better rates a few months before your mortgage term ends if you pay your mortgage payments successfully. In other words, you can renew the remaining balance of your mortgage at an even better rate. However, you will need to contact a credible mortgage broker in Oakville for this purpose. An experienced mortgage broker can help you negotiate better rates with a mortgage renewal in Oakville for a mortgage.
A Few Facts about Mortgage Payments
- 70 percent of mortgage borrowers never make it to the end to complete their mortgage payments.
- 30 percent of homebuyers pay their complete mortgage until the renewal period arrives
When you don’t have any plans to move in the future and are happy with the current mortgage, you can likely renew.
Mortgage Renewal and The Role of a Mortgage Broker
Most lenders send a renewal letter to mortgage borrowers when a mortgage term has a few months remaining. Nearly 60 percent of borrowers sign the mortgage renewal terms without shopping for more favourable rates. You shouldn’t commit this mistake and negotiate with lenders for a better rate.
Most standard terms for the mortgage are 5 years. However, mortgage rates can differ in such a period. Despite this, lenders provide higher rates on renewals because they think ease of mortgage renewal will prevent borrowers from looking for new rates. However, shopping for a better rate isn’t arduous that people think it’s.
Mortgage borrowers can save a couple of hundred dollars a month with a better rate with mortagge renewal. They can renew their mortgage terms at a better rate with the assistance of a credible broker, like Patrick Romann. Please, keep track of your mortgage term end date to apply for a new rate before 4 to 6 months of its expiry. It will help you find the most affordable option for mortgage renewal.
Options for Mortgage Renewal
You may find that a bank will offer you a great rate for mortgage renewal after shopping around for options. You should also make extra payments on your mortgage if you get a better rate with mortgage renewal. Homeowners also have the opportunity to switch the mortgage besides mortgage renewal. Nevertheless, it can involve penalties based on the term of a mortgage. You can transfer the mortgage to another lender it requires going through the mortgage process again. Hence, mortgage renewal is a smarter option, unlike mortgage transfer.
You shouldn’t forget to contact your mortgage agent when your mortgage term is near the end. A mortgage agent can help you get better mortgage rates with mortgage renewal. As a result, you can pay your remaining mortgage affordably in Oakville.
Conclusion
You can look for better mortgage rates a few months before mortgage renewal if you pay your mortgage payments successfully. When you don’t have any plans to move in the future and are happy with the current mortgage, you can likely renew. You may contact your mortgage professional to negotiate better rates in Oakville for a mortgage. Lastly, you can choose mortgage transfer over mortgage renewal, yet mortgage renewal is a smarter option.
