Important Considerations when Renewing Mortgages in Markham

Important Considerations when Renewing Mortgages in Markham

Chances are, circumstances have changed from when a homeowner first obtained the mortgage on their home.  Renewal time for mortgages in Markham is a great opportunity for homeowners to re-evaluate their needs. Too often, people receive their mortgage renewal notice and sign on the dotted line without looking at all their options. As a result, there is little or no incentive for financial institutions to give their best offer. It just takes a little extra effort on the part of the homeowner to potentially save thousands of dollars over the course of mortgages in Markham.

Things to consider when it is time for renewing your mortgage:

  • Go online, research and shop around. There are many websites detailing the existing mortgage rates that lenders in Canada are offering. Knowing the mortgage rates may help when bargaining for a better rate from your lender. Based on a $150,000 mortgage, saving even 0.5% on your mortgage rate can save you up to $10,000 over 25 years. A little research can help put thousands of dollars into your pocket.
  • If the renewal rate is lower that your previous mortgage rate and you are still comfortable making these payments, consider keeping the payments the same at the lower rate. This will help reduce the amortization period of your mortgage, saving you interest in the long term.
  • Evaluate your future plans before renewing your mortgage. If your are planning a move in the near future, do not go with another 5 year term as the prepayment penalty will be too big. This is a very important consideration because prepayment penalties can cost you thousands of dollars. You need to know your options.
  • Mortgage renewal time is a good opportunity to switch lenders because there is no penalty in doing so. Do not stay with your current bank without at least shopping around to see what other lenders can do for you. More Canadians than ever are looking to mortgage brokers to help them better understand their options. Mortgage brokers can navigate the market on your behalf, assessing solutions from multiple lenders to provide a range of options.

Options to consider when renewing your mortgage:

  • Mortgage renewal time presents an ideal opportunity to increase the value of your home with a renovation. Since home improvements are typically less expensive than relocating, the cost of renovating a dream kitchen can be rolled into your mortgage renewal. Mortgage renewal is a perfect time if you are looking to unlock equity in your home for a renovation project.
  • If you are carrying high interest debt outside your mortgage, you can consolidate your debt as part of your mortgage renewal. Consolidating debt refers to acquiring a single larger loan to repay all other loans, resulting in a consolidated debt with only one payment each month at a lower interest rate.
When you are ready to begin the process of renewing your mortgage, contact a mortgage specialist in Markham who will ensure that you have the latest products and information about mortgages in Markham to help you make a final decision.




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