If your Mortgage is up for renewal in the next few years, it’s never too early to prepare so that you are sure to get the lowest rate in the market at that time.  Your mortgage rate can be held for up to 120 days prior to the actual maturity date. 

Lenders will not usually waive penalties for early renewal and don’t be fooled if they do.  Chances are that you’re not getting the most competitive rate.  Some lenders also are known to offer clients “posted” rates versus the fully discounted rates that new clients may be getting.  So don’t be fooled and sign on the dotted line without  a second opinion. 

Alot of people will also ask if they can add extra money to their mortgage at renewal time and that usually depends solely on how much equity is in your home.  If you have more than 20% equity in your property then chances are you can.  If you don’t then you will be renewing for the exact mortgage balance you owe at time of renewal. 

Two Key Items to Look at when preparing for Renewal:

1.  Ensure your credit score is strong at renewal time.  Avoid any missed or late payments and do your best to keep your balances less than 75% of the limit amount. 

2.  Ensure your income is in line with what it needs to be to qualify.  If you are newly self employed, this could impact whether you will qualify or not and may be stuck with the same lender at a higher rate if you don’t. 

The best thing to do overall is to call me, I can tell you very quickly what needs to be done, what’s available and the best way to proceed.  And if staying with your existing lender is the best choice….then I will advise you to do that too.  Call me at 604-729-7940 if you need help.