Renewing Your Mortgage

Incredibly, many Canadians renew their mortgage with the same lender because they believe it’s too time-consuming to shop around – or think their existing bank’s offer is the best deal available.

This isn’t necessarily true. Unfortunately, many of these same people simply accept that lender’s posted rate or slightly better. At The Mortgage Centre, we’ll shop some of Canada’s leading lenders to compete for your renewal so you can rest assured that we are working hard to help get you a competitive rate matched to the features and benefits suited to your unique needs.

What about an early renewal?

Because mortgage rates may fluctuate often, it’s beneficial to revisit your current mortgage product, regardless of how long you’ve had it. An early renewal involves renegotiating the mortgage term and interest rate before the maturity date.

Some mortgage products allow the borrower to renew their mortgage early at any time during the term. However, a prepayment charge may apply if the borrower:

• Has a closed-term mortgage
• Renews their mortgage before the end of term

Before a client does an early renewal, the client should contact their lender to get details of any prepayment charge, or other fees that could be charged for renewing early. It is important to understand the options to capitalize the prepayment charge, or if there are any restrictions on what products the client may early renew into.

A Mortgage Centre Specialist can shop the market for you and help determine whether you’ll save money by breaking your current mortgage and renewing early. We’re happy to discuss the possibilities with you!