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The AC Lending Weekly

Mortgage Renewal Tips

It’s a common misconception that you are unable to change your mortgage agreement until the specified term is over. A recent study found that 70% of people automatically renew their mortgage without considering the options that are open to them. Lots can change through the duration of your mortgage term (3, 4, or 5 years for example). In the real estate market and with interest rates. Often, homeowners can save a lot of money by refinancing when their mortgage is up for renewal.

Keep the following tips in mind to save money on your next mortgage renewal.

Plan Ahead

Nearing the end of your mortgage term, a renewal notice is mailed to your address a couple of months in advance. This notice informs you of your renewal date and allows you lots of time to shop around for a better mortgage rate. Check with your current lender for a discounted rate and with other lenders too. Usually a four to six month window is given for accepting a discounted mortgage rate, allowing you plenty of time to search for a lower rate with another lender, or a discounted rate with your current lender.  


Changes occur regularly in the marketplace. If you want the best possible mortgage rate, you will have to do a little research. Consistently checking mortgage rates with various lenders will help you keep up-to-date with market trends and stay informed when a better opportunity arises. During your research, avoid signing on at a bank’s posted mortgage rate – these are typically the highest rates offered by banks. Taking the time to research different rates will help you recognize a great rate when it comes along.

Don’t Fear Fees

Some mortgagees fear switching lenders because of hidden fees and the paperwork that may be involved in the process. If you have done your research and begin early enough, there is no reason to avoid switching your mortgage lender. There is usually no monetary penalty when you switch your mortgage at a renewal time. Switching allows you to take advantage of lower rates and save money, so avoid switching if you can find a better deal with a different lender.

Negotiate, Negotiate, Negotiate

Everything is up for negotiation. Most people only negotiate the interest rate when they apply for, or renew, their mortgage, but all variables are up for negotiation. Be sure to know the significance of fixed versus variable rates, amortization period, and payment schedule flexibility; this will increase your negotiation power. Every variable can help you save money by reducing your interest rate, payment amount, and payment period.

Professionals Help

Many people avoid changing and renegotiating their mortgage, because the process and all of the information can be overwhelming and time consuming. AC Lending is a group of professionals that will lay out all your options and help you make an informed decision that you are 100% comfortable with. We are happy to help!


Based on Your First Mortgage Renewal by Pam Pikkert


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