Time for Mortgage Renewal? What you need to know :

The Mortgage Renewal process plays a crucial role in a borrower’s financial situation. Borrowers can get the lowest interest rates from new lenders rather than what his existing lender is offering him. Mostly we have seen, borrowers do not want to shop around as they think switching is time-consuming and challenging, which takes away the opportunity of saving money from them. Most of the lenders know this trend, and they might offer borrowers the highest interest rate than the current rate. As a consequence, they can confront temporary financial as well as mental strain.

Posted on: October 14, 2020

The Mortgage Renewal process plays a crucial role in a borrower’s financial situation. Borrowers can get the lowest interest rates from new lenders rather than what his existing lender is offering him. Mostly we have seen, borrowers do not want to shop around as they think switching is time-consuming and challenging, which takes away the opportunity of saving money from them. Most of the lenders know this trend, and they might offer borrowers the highest interest rate than the current rate. As a consequence, they can confront temporary financial as well as mental strain.

However, switching is only beneficial when mortgagors are getting the lowest rates than their current mortgage rate. One thing to keep in mind, the lowest rate does not mean every standard charge term of the mortgage contract is favorable. We would like to suggest when the time for mortgage renewal approaches you; try to shop around at least 3 months before your renewal. When you switch, always read the mortgage contract especially what are the prepayment charges, repayment options, penalty for breaking a mortgage, amortization period (whether it is shortened or extended, if the period is reduced then it can put financial pressure on you or if it is extended then it can cost you to pay more interest).

In addition, we can understand switching comes with stress test and the borrower has to qualify to get the best interest rates. You must have an excellent credit score and a good source of income. As life is unpredictable, you can get remarkable financial development or you can face a financial crisis. If you are not able to maintain your financial status then it becomes hard to get access to best rates. We are dedicated and experienced brokers in GTA can help you to get the door open to secure a mortgage through Subprime and Private lenders if you have income problem or challenging credit.

Along with that, we can also understand it takes a lot of time and patience to shop around to get the best mortgage rates, and sometimes, it becomes a hard nut to crack to manage the work- life and this extra work. Professional mortgage brokers help you to get the best rates that are suitable for your financial condition without wasting your time. We at MB Mortgages put ourselves in client’s shoes and go above and beyond helping them out. You can visit us once to fill up our mortgage application or you can get your work done online in the comfort of your home, enjoying tea with your family members, you just have to fill in every single information that is required to fulfill your financial needs and then send it back to us. We do take care of our clients who are not comfortable with technological literacy. They can simply visit our office for a consultation and fill paper- based application.

Tips for Mortgage borrowers

  1. Talk with Accredited Mortgage Professional– We would like to advise borrowers to have a chat with professionals which will show them a way to get the best rates for their mortgage. We are Accredited Mortgage Professionals at MB Mortgages Inc. and are well trained with more than 10 years of experience in the financing field.
  2. A Good Credit score is key-  In Canada, mostly financing decisions depend upon the credit score whether you want to buy a house or car. We would like to advise mortgagors to maintain a good credit score by paying off their utility bills, mortgage payment, car loans, orinsurance on time. These steps will dramatically surge their credit score up.
  3. Must review standard charge terms& conditions of the mortgage contract- Borrowers must go through the standard charge terms of the mortgage contract, so no mortgagee can make them fool by offering low rates. They offer you favorable rates but on the other hand, terms and conditions are unfavorable. Always keep an eye, what are the prepayment charges, repayment options, penalty for breaking a mortgage, fixed-rate or variable rate ( ask your lender how it can impact or beneficial for him in the future), amortization period , etc.
  4. Shop around at least 3 months before your renewal- Borrowers must shop around at least 3 months before renewing their mortgage. In this way, they would have plenty of time to think about what they need and where to go to get the best rates. We have noticed, mostly borrowers shop around hardly 10-15 days before their renewal approaches which do not help them to get the desired results and unfortunately, they do not have another option except to stick with their existing lenders.
  5. Get a Rate holdWe would like to advise the borrower to find a professional mortgage broker to get the best possible rates. If you get the low- interest rate than your existing lender is offering ask the broker to hold that rate for you as rates are kept on changing. Rate hold locks the interest rate for 120 days and helps you to lower down your stress and anxiety. If the rate goes down than the holding rate, then you can negotiate with the lender and save more money in your pockets.

As a Mortgage Brokerage, we have strong relations with multiple banks and numerous lenders. We work with Canada’s leading lenders to provide you a mortgage solution that fits your budget. Our mortgage and financing process is very simple, we represent you and match you with the best suited mortgage as per your needs. This way we can guide you through this complicated process with our years of mortgage financing experience.

Why choose us-

  • We are dedicated and professional Accredited Mortgage Brokers in GTA.
  • We are well trained and have experience in the mortgage financing field more than 10 years.
  • We can shop around with different lenders to get you the best possible mortgage rates and conditions as well.
  • We have different options for different income and credit level with access to number of private lenders to suit borrower’s needs.

We are located at 2896 Slough Street, Unit # 6, and Mississauga, ON L4T 1G3. Call MB Mortgages Inc. today at 905-458-6929/416-939-7131 for your queries or you can email us at: info@mbmortgages.ca or you can visit our website: www.mbmortgages.ca.

The information provided in this blog post is intended to provide general information. You should consult with a mortgage professional to fully determine the scope of your situation. MB Mortgages shall not be held liable from usage of the information provided on this page. Individual situation may vary.