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Is Early Renewal Right for You?

Reasons an Early Renewal or Refinance MAY Be Appropriate At This Time

Fixed mortgage rates are just slightly above their all-time low from a short while ago, however, not by much, which is good. We also know that fixed rates will be heading upwards over time from where they are now, not so good.  So, if you are able to arrange your new mortgage now, before rates go up further, you may be able to save in the long run vs. if you were to do this process at some point down the road when you will only be able to select from rates that are available at the time (which will very likely be higher than they are today). This applies to both early renewals and refinances.

Early Mortgage Renewal

If you have always gone with a Variable Rate Mortgage and you needed to renew your mortgage during the turmoil when the variable rates were not priced very attractively (e.g. prime + 1.00%), you may benefit from refinancing now to get a new variable rate mortgage at a respectable discount to prime.

Mortgage refinances are less about timing as they are being done to address a goal or need. However, while addressing the purpose of the refinance there are also opportunities to ensure savings can be maximized. Factors such as: term length, fixed vs. variable rate, amortization length, and various other mortgage options, should all be taken into consideration when structuring the refinance.

Reasons an Early Renewal or Refinance MAY NOT Be Appropriate At This Time

Everything in terms of your mortgage may be just fine at this time. Below is a brief list of some situations to illustrate when an early renewal or refinance may not provide any significant savings or benefit:

  • The interest rate you have is lower than what is currently available

  • Everything about your mortgage is OK, you are just curious to see if there are lower interest rates available. If current rates are very close to what you already have the cost to renew early or refinance may not be able to be recovered as the new rate is very close to your current rate.

  • If it is unlikely that the cost to refinance (i.e. penalty) will be able to made up in the new mortgage

 

 

 

 

 

 

Re-examine your mortgage from time to time, and at least once a year. There are thousands of dollars that could be saved in many situations, but they go unnoticed. Mark our site, Cashin Mortgages as one of your favourites for quick reference, and you can always contact us by e-mail or phone and obtain a FREE mortgage check-up from one of our mortgage specialists at Cashin Mortgages

Mortgage Renewal means staying with your current lender for another term. You now have the power to renegotiate the terms of your mortgage, including interest rates, payment frequency and length of the next term. Mortgage renewal is the time after a mortgage term before you start the next term in order to payout your mortgage. This is an important part of the mortgage cycle because you get to see if your current terms are optimized for your needs. You may decide to switch to another lender in between terms which is perfectly in your right and is sometimes the best option.

 

It’s generally a good idea to start the process a couple months before your current term expires. This allows you to do your own research and find the best option for you. Mortgage Renewal is your chance to optimize your mortgage for the current market and your financial needs. If you have any questions about Mortgage Renewal, get in contact with us so we can help you.

The decision to pay a penalty now or wait until your mortgage renewal date depends on your specific circumstances.

It’s essential to calculate the penalty amount and consider factors such as your financial situation, the purpose of breaking the mortgage, future interest rates, and the time left on your current mortgage term.

Consult with us today and we can help you determine which option is better for you.

How We Can Help You!

We can help you navigate the market and find the best deal that works for you. Our Mortgage professionals only have your best interest in mind and know some of the best ways to optimize your mortgage to work for you. 


Ready to take the next step? Book a call with us today and let’s discuss your financial goals. Your future starts now! Or, give us a call at 416.655.CASH (2274) directly for immediate assistance.

Ready to make the most of your mortgage renewal?

Your Financial Success is just Renewal Away!

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