Renewing Your Mortgage

The dreaded letter arrives. Your mortgage is up for renewal. Now what?

Mortgage renewals can seem like a daunting task, but never fear, AC Lending is here! Basically when you receive the renewal notification, you have a couple options available to you. You can simply renew the mortgage and resign your existing agreement, you can negotiate a better deal with your current lending agency, or you can look at what other lenders are offering and see if there’s a better deal out there.

Let’s look at the details of these three options:

1. Renew & Resign you Existing Agreement

This is the simplest option, but you may miss out on a better deal that could greatly benefit you in the long term. Usually, the renewal offer you receive is at the top end for price, as we must remember that banks are businesses too and with ease comes and extra cost. If getting the renewal over with is more important to you than negotiating on cost, then this is a great option for you.

2. Negotiate a Better Deal with your Current Lending Agency

There is nothing wrong with going to your current lender to see if you can negotiate or make some changes that will help save you some money. If you have not gone through a major life change recently, such as becoming self-employed, then this is a great option for you. If your financial position is a little up in the air we would caution you to divulge into option three.

3. Look at What Other Lenders are Offering

If you have not gone through a major life change and you aren’t happy with your current lender’s options then the best thing you can do is shop around. Though it may be painful, it could be the difference between saving thousands of dollars and potentially limiting the time to pay off the loan. Going through this switch of lenders is common and most lenders deal with them all the time. If they need an appraisal to redo the mortgage they will likely cover the cost. Also remember that if you decide to switch to a new lender you will need to have all documentation ready again, including;

• Letter of employment and recent paystub
• Renewal offer from your current lender
• Proof of home insurance
• Property tax bill
• Other items as needed

So there you have your options. If you are still unsure about what option may be best for you, feel free to pop into AC Lending Group’s office. We are always happy to sit with you and help you navigate the mortgage process!