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Mortgage renewal coming up? Start early and look beyond the rate, brokers say
Brokers say homeowners should start renewal shopping months early and compare fees, penalties and payment flexibility, not just the headline rate.
- Certified mortgage planner Kola Ifabumuyi of Mortgage Architects advises homeowners to start shopping for renewals about four months before their term expires, avoiding the mistake of signing whatever arrives in the mail.
- Savvy borrowers view renewal letters as the start of a negotiation process rather than final offers. Steven Biderman, certified mortgage broker with Mortgage Outlet, notes that a simple conversation can sometimes prompt lenders to improve their initial terms.
- Ifabumuyi calculated that securing a five-year fixed rate of 4.5 per cent instead of 4.79 per cent on a $500,000 mortgage saves $4,629 over five years, demonstrating the tangible value of rate shopping.
- While renewing with an existing lender is usually the simplest route, switching lenders can yield better rates but requires new approval and may involve appraisal, legal, and discharge fees.
- Beyond interest rates, borrowers should consider term, payment flexibility, portability, and personal plans when choosing a mortgage, Biderman advises, ensuring the decision aligns with long-term financial goals.
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12 Articles
12 Articles
The Toronto Star+11 Reposted by 11 other sources
Mortgage renewal coming up? Start early and look beyond the rate, brokers say
Homeowners may be tempted to take the mortgage rate offered in a renewal letter, but savvy borrowers see it as the start of a negotiation process that could lead to
·Toronto, Canada
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Total News Sources12
Leaning Left7Leaning Right0Center2Last UpdatedBias Distribution78% Left
Bias Distribution
- 78% of the sources lean Left
78% Left
L 78%
C 22%
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