A renewal is a straight switch transfer of your mortgage at the end of your mortgage term that is intended to not change any aspects of your mortgage, except for the lender, product, and rate into a new agreement.
Habitually, the renewal of a mortgage is performed a lot like the renewing of car insurance. After the mortgage has been renewed, the new mortgage is based on the outstanding balance and outstanding amortization at the time of renewal. There are several other factors that need to be considered before you can decide on renewing your mortgage. Below is some information to help you with your renewal processes.
Basic Steps To Renewing A Mortgage:
- Call and provide your information to one of our Mortgage Professionals.
- Provide Standard Documentation (see below) for the new lender to approve and request the Payout Statement from your existing lender.
- Decide on one of our best recommended mortgage products, and rest easy.
Standard Documents List
Renewal Letter: copy of Renewal Letter from existing lender
- Employed: letter of employment & latest paystub
- Self-Employed: last 2 years of T1 Generals
- Commissioned/Casual: letter of employment & last 2 years of NOA’s
- Retired: last 2 years T4s, & latest Worker Pension statements, CPP, OAS
Void Cheque: authorizing direct payment withdrawal
How a Mortgage Broker Can Help Your Renewal
There are very many people that wonder what a mortgage broker can do that their bank can’t. However, you should think twice before attempting to cutout the middleman while seeking to switch transfer your mortgage renewal. If you receive renewal papers from your mortgage holder, it doesn’t mean that you have to sign them. You can use the time uo to your maturity date to re-assess your financial situation, look into the current interest rates, plus the steps of changing mortgage holders in case you wish. Below are some of the guidelines you can follow while renewing your mortgage.
Ensure you Stay Protected
You need to understand that a mortgage broker has the a duty-of-care to you, and recommends suitable alternatives to what your bank provides. The bank has access to only their own products, while a mortgage broker has access to ALL.
Have Someone Qualified Help You
It is not easy to select the appropriate mortgage for your financial needs, but Mortgage Brokers are licensed and qualified to offer you the right advice. We are independent and will help in getting you the best mortgage product available.
Request Industry Knowledge
The mortgage principles have tightened greatly over the last few years. However, a mortgage broker deals with the lenders on a daily basis and updated on new lending policies so we can process an application without any delays.
Consider Before Auto-Renewing with Your Bank
Many home owners auto renew with their current bank or lender, but this is not in your best interest. The renewal letter sent to you by your lender will contain rates and terms specific to that lender only. Banks are businesses too, and they do not offer the most competitive savings upfront.
We contact all of our current clients 4-6 months before their renewal date to ensure they can have the necessary documents ready for the advancing 120 day window preceding their renewal date. Once 120 days out, we secure our clients with the market-best mortgage product suited to their specific needs incoming years. Generally, it takes about 2 weeks to complete a renewal transaction, so we ensure all the work is completed before hand.
As long as the amortization, outstanding balance, and persons on title of the renewing mortgage is staying the same for the transition, there is never any cost to the borrow. If any of those factors are likely to change, the renewal then automatically becomes a refinance, and a current appraisal and legal fees will be applicable.
Talk to us right now and have more of your questions answered at 778 320 4346.