Nationally, Alberta has the highest percentage of homeowners with mortgage renewals coming up within the next two years.
You may be coming up for renewal soon. You may be concerned rates are rising, even with a renewal a few years away. The consensus is rates are increasing in North America over the next year and may continue to do so in the foreseeable future.
The new government has significantly changed the mortgage market with their implementation of new rules and underwriting guidelines. Due to these changes lenders are now restricted on what they can do and what they cannot offer to their clients. Some specific niche situations are now larger factors in whether or not you are approved.
Here are some questions to think about when you’re up for renewal:
- Has your credit score changed?
- What is the loan to value of the mortgage required?
- Was your mortgage originally insured by CMHC or another mortgage insurance company?
- Is this a simple switch to a new lender with no new money or a refinance with added funds?
Depending on how you answer these and other questions, we may very well be able to get you a lower interest rate with better terms then what your current lender offers.
Your existing Lender will typically offer you a renewal rate around 30 days before renewal. In an increasing rate environment, why wait until the 30-day mark? Most lenders can lock in a rate hold for 120days. If rates go up 0.5% during the 120-day period, and you are locked in and do not have to worry about the increase.
What Can a 0.5% increase mean for you?
If you have a $350,000 mortgage, you could save $8000-$9000 over the next five-year contract. As well potentially lower your remaining balance by $3000-$4000 at the end of your term. Do you want to save $10,000 or more?
Contact one of our Licensed Mortgage Advisors and let them get you the best financing available to you
Croft Axsen,
Broker/Owner, Jencor Mortgage Corporation