While most Canadians spend a lot of time, and expend a lot of effort, in shopping for an initial mortgage, the same is generally not the case when looking at mortgage term renewals.
When it comes to renewing your mortgage in Grande Prairie, most people do not put as much thought or consideration into the options available to them. This lack of consideration could potentially cost thousands of extra dollars every year. More than 50% of borrowers will receive the renewal sent to them by their lender, and simply sign and send it back without shopping around for the best interest rate available.
Homeowners looking for mortgage renewals in Grande Prairie should never accept the first offer sent to them by their existing lender. You could potentially be costing yourself a lot of money without negotiating your mortgage rate. Between four and six months prior to your current mortgage term expiring, it is a good idea to contact Chanele and begin shopping around. By the time you receive a letter from your lender offering the terms of your renewal, it is usually too late to explore your options and arrange terms with other lenders. For this reason, it is important for you to be tracking the timeframe associated with your own mortgage term and be aware of when it will be time to start looking for the best rates for your mortgage renewal in Grande Prairie. You will be amazed with what Chanele can accomplish for you by shopping around on your behalf long before you even hear from your lender about renewing. Knowing that your mortgage is generally the largest expense in your budget, it is crucial to find the most cost effective interest rates and mortgage terms you can find. You will be able to gain substantial savings over the life of your mortgage by enlisting Chanele to do the heavy lifting and shop around on your behalf. Don’t be one of the majority who simply sign the renewal letter from their lender. Contact Chanele Langevin today to ensure lenders are competing to win your business, and in turn awarding you cost savings.
Always keep in mind that it’s a good idea to keep reviewing your financial goals. If you maintain a habit of this, then when the time comes for your renewal you’ll be prepared for what kind of results you would like to achieve. Also, this is a good time to assess whether you would like to continue your next term using a fixed or variable interest rate. You may want to consider the term length as well. If you are planning to keep your home it probably makes sense to stick with a longer term, however, if you are planning to sell in the near future then a 2 or 3 year product could be more suitable.
How will Canada’s new rules affect mortgage renewals in Grande Prairie?
Since the new stress test was implemented in 2018, it has become more difficult for Canadians to acquire a mortgage loan. This test is meant to ensure you can afford the benchmark interest rates set by The Bank of Canada, plus and additional 2%. This limits the amount you would have typically qualified for before the stress test was implemented. Those individuals who started their mortgage prior to this change may be affected by it when the time comes for renewal. When shopping for mortgage renewals in Grande Prairie keep in mind that lenders will still want to know that you can afford to carry the loan. It may be a good idea to review your finances in advance and make sure you are managing debts and maintaining your income level. Otherwise, you may be stuck with your existing lender at the rates they choose, rather than being able to look for another lender offering rates that are more desirable. If you are not able to meet a new lender’s qualifications, you’ll be left having to accept whatever terms and rates are offered to you by the current lender. Proper planning and financial discipline will help ensure you still qualify for a mortgage based on the new stress test rules.