The Ultimate Guide To Mortgage Renewals In Abbotsford

Need help with mortgage renewals? Every mortgage has a set term that lies usually between 6 months and 5 years. The term should not be confused with the amortization of your mortgage, which is the amount of time it would take to pay it off in full if you followed your payment plan. 

In order to continue making mortgage payments and to stay with your current bank or lender, you will need to renew your mortgage when your term expires. This includes negotiating with your present lender for a better rate and term or comparing offers from other financial institutions. Only the remaining amount on your mortgage is being renewed during a mortgage renewal; no fresh cash or equity are being requested or processed.

How should I proceed with the renewal process?

At least 21 days prior to the end of your term, but frequently much earlier (30–45 days), your lender will send you a renewal offer. The suggested interest rates and term options will be described in this offer. 

1. Shop around: To discover whether you can get a better interest rate, get quotations from several lenders. Having a mortgage broker handle that legwork for you is the simplest method to find the best deal.

2. Negotiate freely: Don't be scared to negotiate with your present lender or to have an Abbotsford mortgage broker do it for you. Show your commitment to your present bank and ask them to match a competitive offer.

3. Opt for a new term: Consider whether you still require the original term duration. Depending on market forecasts or your financial comfort, you may decide to lengthen or shorten it upon renewal.

4. Credit score matters: Your chances of receiving a renewal offer or refinance can be greatly improved by having a high credit score. However, establishing and preserving credit should be followed continuously rather than last-minute.

5. Negotiate leverage: To get a better rate from your existing lender, use quotes from other lenders as leverage.

Examine Fixed vs. Variable Rate Options

While variable rates are subject to market fluctuations, fixed rates provide stability. Select the mortgage renewal plan that best suits your financial objectives and risk tolerance. This can be altered when the contract is renewed, but it is difficult to alter in the middle of the term. Variable rates can frequently be changed to fixed rates at any point during the term, depending on the newly announced rate cuts.

Start early rather than at the last minute. Make sure you have the time and concentration to negotiate a better rate by researching rates and speaking with a mortgage renewal broker in Abbotsford at least two to three months before your current mortgage expires.

Conclusion

When it comes to mortgage search, there are many rate comparison websites and calculators that can be helpful in providing a vast number of options to choose from, but occasionally they could be slow or misleading. Only an experienced and licensed mortgage broker can help with the right mortgage renewal services in Abbotsford. 

If you are looking for a trusted broker to rely on, Sandhu & Sran Mortgages is the best choice. For past many years, we are helping eligible mortgage brokers in finding and negotiating the most competitive rates and deals possible. Contact us for more details.