Welcome!
I’m Melony, a dedicated full-time mortgage agent and proud mom to two young children. With a passion for empowering my clients, I strive to ensure they are equipped with all the knowledge necessary when it comes time to renew their mortgage. Too often, homeowners find themselves navigating this process blindly, unaware that their lender may not have thoroughly assessed their current needs. Well, Renewalguide.ca is here to make the process not only easier but also more rewarding. We understand that your mortgage journey is more than just numbers on a page – it’s about your dreams, aspirations, and financial well-being. I’m committed to helping you pull together a comprehensive plan that considers your budget, future plans, credit challenges, and future opportunities.. and I am committed to demystifying the mortgage renewal process, providing clarity, and ensuring that each homeowner understands their options fully.
So let’s get started on this journey towards financial empowerment and informed decision-making.
So, let's talk about mortgage renewal:
When your mortgage term ends, typically every 1-5 years, it’s time for a mortgage renewal. This is your chance to fine-tune your mortgage to fit your current financial situation. You can review and adjust interest rates, payment plans, and timeframes. You have options: stick with your current lender, negotiate new terms, or explore offers from other lenders. However, it’s essential to compare current rates to potentially save money. More than that, it’s crucial to have a clear understanding of your current and future financial goals. This ensures that your new mortgage is not only sustainable but also supports your long-term plans.
Renewing your mortgage is a big deal that affects your financial future. Take your time, explore options, and choose what’s best for you. Being informed and proactive helps you get a mortgage that suits your needs and long-term financial health. As a mortgage agent with access to a wide array of programs and lenders, I can offer you significant advantages during the renewal process. My extensive network and expertise allow me to explore multiple options tailored to your specific needs and financial situation. With access to diverse programs and lenders, I can negotiate competitive rates and terms on your behalf, potentially saving you money in the long run. Having more choices enables us to find a mortgage that closely aligns with your financial goals and preferences. Once you go through the next pages if you would like more help through the renewal process, my team and I can provide personalized advice and support every step of the way.
For now let me walk you through the process of mortgage renewal that you should be taking before making any decisions!
What's next...
Frequently Asked Questions
What factors can impact my mortgage renewal?
Your mortgage renewal can be influenced by changes in your financial situation since you initially secured your mortgage. Events such as missed credit payments, a decrease in income, or a lower credit score could potentially affect your mortgage renewal.
How many Canadian mortgages are due for renewal in 2024?
According to the Bank of Canada, approximately 80% of mortgages active as of March 2022 will be up for renewal in 2024, totaling $251 billion. This figure is expected to encompass nearly all mortgages by 2026.
Are mortgage rates expected to decrease in Canada in 2024?
There is a possibility of mortgage rates decreasing in 2024. The Bank of Canada has hinted at halting its benchmark overnight lending rate increases due to improved inflation rates in 2022. Analysts anticipate the central bank may start reducing its interest rate throughout 2025, potentially leading to lower variable mortgage rates. Additionally, fixed mortgage rates have already begun to show slight discounts due to lower bond yields, reflecting investor optimism about the central bank’s rate hike cessation.
Can a mortgage renewal be denied in Canada?
Although rare, a mortgage renewal from your existing lender can be denied if there has been a significant deterioration in your financial situation. In such cases, exploring alternative lenders or different term options may be necessary.
What questions should I consider when renewing my mortgage?
At the time of mortgage renewal, it’s essential to reflect on any significant life events, such as job loss or significant purchases, which might impact your borrower profile. Additionally, exploring alternative product options, like adjusting amortization periods or switching between fixed and variable-rate terms, can be beneficial.
What's the distinction between a mortgage renewal and a refinance?
A mortgage renewal involves obtaining a new term for your existing mortgage without changing the loan amount or terms, either with the current or a new lender. Refinancing, on the other hand, entails replacing your current mortgage with a new one, potentially altering the loan amount and terms, and possibly incurring penalties for breaking the existing mortgage.
What exactly is a mortgage renewal?
A mortgage renewal refers to renegotiating an existing mortgage agreement upon the expiration of the original term. This process occurs until the mortgage amortization is complete, offering borrowers the opportunity to assess and adjust their mortgage features if needed.
Should I opt for a 3 or 5-year mortgage renewal?
The decision between a 3 or 5-year mortgage renewal depends on your preferences and circumstances. While 5-year terms often provide competitive rates, shorter terms offer greater flexibility at slightly higher rates.
Do I have to renew my mortgage?
Renewing your mortgage is necessary as long as there is an outstanding mortgage balance. However, you have the option to switch lenders or modify term lengths, rates, and types during the renewal process.
While I recommend starting the mortgage renewal process at least 120 days in advance, it’s essential for clients to take proactive steps to protect themselves from any unexpected changes in interest rates. By initiating the renewal process early, clients can ensure they have ample time to explore their options and make an informed decision. Additionally, I advise clients to secure a rate hold immediately by contacting their lender or mortgage agent. This rate hold will safeguard them against any unforeseen rises in interest rates, providing peace of mind throughout the renewal process.
When it comes to making a decision on your mortgage renewal, it’s important to assess your options well in advance of the renewal date. If you find yourself needing more time to research or seek advice, consider asking your lender to renew you into an open mortgage. This provides you with the flexibility to continue your research without feeling rushed. Alternatively, working with a Mortgage Agent like myself can provide valuable guidance and assistance throughout the renewal process. By taking proactive steps and exploring all available avenues, you can ensure that you make an informed decision that aligns with your financial goals and circumstances.