Renew Your Mortgage

Is your mortgage renewal date coming up?

How Our Mortgage Brokers Can Help

At AKAL Mortgages, we believe that you should not just renew your mortgage loan—you should renegotiate it! Our mortgage brokers have connections to numerous lenders and can help you assess your options and determine which one will provide you with the best loan terms. We can help you compare factors such as:

• Interest rates
• Lender fees
• Annual percentage rates (APRs)
• Monthly payments

4 things that you should evaluate to renew your mortgage

Begin to Shop 4 Months before Your Term is up

Mark your current mortgage term’s maturity date on the calendar, then count back 120 days (~ 4 months) and mark that too; this is the date majority of the lenders will let you begin the early mortgage renewal process, meaning you could renew early with your current lender without having to pay a prepayment penalty (for breaking your term early). If you’re not ready to sit down with your mortgage broker or lender on this day, you can at least start researching your options online. By identifying which lenders are offering what, in terms of mortgage rates, prepayment options and other terms and conditions, you will be better armed to mediate when you are all set to renew.

Consider Your Financial Goals

Let’s Face It: A lot can happen throughout your current mortgage term. Your financial goals at the beginning of your current mortgage term may no longer match up with your present goals. You could have received a substantial raise at work, lost some income or even retired. You may have had a baby, or need to pay for your child’s university tuition. If there’s any chance you’ll need to move in the next 5 years that should be factored into your decision. Or if you think you want to access some equity, you should be mindful of that too. Whatsoever your needs are, make sure you consider them when choosing a mortgage rate, term and product.

Be Ready to Renew in the Last 30 Days

By law, your current lender has to send you a mortgage renewal statement at least 21 days before your term is up, but they will usually mail you a renewal offer for their lowest posted rate that is good for the 30 days before maturity. By extending that offer for 30 days, you’re protected from any potential rate increases during that time. However, you should have done enough research by now to know whether or not it’s actually the best mortgage rate on the market – and if not, you’re perfectly within your right to try to negotiate. However, even if you sit down with your current lender to negotiate their offer, it’s unlikely they’ll be able to give you the best mortgage rate. Therefore, in your last 30 days, you should also make an appointment with a mortgage broker, to discuss what other lenders can offer you.

Make a Decision

After shopping around, considering your financial goals, outlining your mortgage needs and receiving a mortgage renewal offer from your current lender, it’s finally time to make a decision. The last question you’ll need to ask yourself is who is offering you the best mortgage rate and product: your current lender or another lender? If you decide to stay with your current lender, you can either choose to sign and return the mortgage renewal offer they sent in the mail, or sit down and try to negotiate a better offer in their offices.

Switching providers will require a little more paperwork, but you’ll find that doing so will give you access to better mortgage rates. Just be prepared to submit a mortgage application, as the new lender’s qualifying criteria might be different from that of your current lenders.