Mortgage Renewals in Ottawa
Is it time to renew your mortgage? We’re here to help you make an informed decision. The Chris Allard Mortgage team takes a comprehensive perspective in understanding clients’ needs. In addition, our unique ability to assist with financing in all areas of real estate makes us a natural choice when it comes to meeting your mortgage renewal goals. Learn more about our dedicated mortgage renewal services today.
Our mortgage team has the right combination of passion and experience to help you reach your objectives. Many homeowners simply stay with their current mortgage lender, thinking it is the best deal they can get, without shopping around for better deals. Don’t fall into this habit, and instead empower yourself to take advantage of the best possible options! Read on to find out more about our services, plus some handy mortgage renewal tips.
Why Choose Us for Your Mortgage Renewal?
Together with mortgage broker Chris Allard, our mortgage agent professionals have the training and experience to help you with all types of mortgage needs throughout the greater Ottawa area and beyond. Whether you have bruised credit, are looking for debt consolidation or simply want to take advantage of a lower rate, we can help.
Our team of licensed mortgage agents is passionate about finding you the best product to suit your needs. We work with all of Canada’s leading banks and lenders so that we can get you the lowest mortgage rate available — guaranteed. We constantly stay on top of the latest Ottawa mortgage trends. We also take pride in our ability to make learning about mortgages an enjoyable experience for our clients, whether first-time homebuyers or experienced investors.
Get Lower and Better Mortgage Rates
When you come to the end of your mortgage term, you may be able to get a lower interest rate by renewing your mortgage. This is because the bank will compete with other lenders to win your business. In addition, many banks will offer incentives such as cashback or a reduced mortgage rate if you renew with them. It’s essential to shop around and compare rates, however, so that you can get the best deal possible.
You may also negotiate with your current bank to get a better rate than what is offered on their website — suppose you’re not happy with the interest rate they are offering, for instance. If they don’t budge, we will work with other lenders on your behalf and see if they can beat their offer. By doing this, you can save yourself a lot of money over the life of your mortgage.
If you decide not to renew your mortgage before the term is up, you’ll likely have to pay a penalty fee to break the contract early. The fee depends on how much time remains until the maturity date (the end of term). In addition, there may be legal fees associated with breaking an existing mortgage agreement which would need to be paid out as well — usually about $500 plus taxes for non-lawyers, or $1500 plus HST from lawyers’ fees depending upon complexity/the amounts involved. Other costs include moving expenses and real estate agent fees if you’re selling your home.
Frequently Asked Questions
Mortgages typically do not automatically renew. The borrower will need to take action and specifically ask the lender to renew the mortgage.
It depends on various factors, but in most cases, it is worth reviewing all options available when renewal time comes around. A lower interest rate could save you money over the life of your loan.
Renewing and refinancing are two different things — though they can sometimes happen simultaneously. Renewing keeps your current mortgage terms, while refinancing allows you to get a new mortgage with new terms.
When your mortgage expires, you may have several options. You can renew with the same lender, for instance, or instead seek new rates and terms with another lender. It is essential to explore all of your options before deciding what to do.
Yes. Even if the borrower has been on time for payments in the past, lenders will still check their credit history when determining whether they can approve them for a loan.
When you reach the end of your current term but don’t want to pay off your home’s value in full yet, you’ll need to sign up for a new set of terms.
Yes, you can. However, your lender will likely charge a high prepayment penalty early to break your current terms. You may find that waiting until the end of your term is cheaper in this case.
It depends on what type of renewal loan product you choose and how much time has passed since taking out the original loan. If interest rates have gone down since then, or if you’ve been making extra payments, it’s possible that monthly payments could decrease during the renewal process.
You’ll start receiving letters from lenders about six months before your renewal date. This is an excellent time to start thinking about what you want. You may also wish to compare options for early mortgage renewal.
You don’t need to renew, but it’s usually best not to let your current loan term expire. Otherwise, you may wind up paying significantly higher rates on the principal balance remaining due when compared with today’s lower rates for borrowers (if applicable).
Suppose there are any penalties associated with early repayment of existing mortgages at this point. Examples include a lack of accessibility funds needed during the transition period, or the inability to obtain new credit lines from other institutions. In such circumstances, it may make sense, financially speaking, that one waits until the end before taking advantage of these offers, which could save thousands of dollars over the long haul.
If you’re not interested in renewing your mortgage, you can pay it off early and close the account. Keep in mind that there may be costs associated with this option, such as prepayment penalties. Be certain to weigh all pros and cons before making a decision. Again, we can help in these and all other areas discussed above to ensure you make a well-informed decision.
Count on Us to Help You Cross the Threshold
We are more than prepared to ensure that you can find the best mortgage renewal rate possible. Our goal is to get our clients a better deal than what they could have gotten on their own. This enables them to save even more over time with lower interest rates or by negotiating for cashback incentives —which all adds up very quickly on a mortgage. Reach out to us today to get started!