When it comes time to buying a house, most people require a mortgage in order to complete the transaction, so they begin the search for a mortgage they can qualify for and comfortable afford; and unless a first time home buyer does other banking with a particular mortgage lender which might earn him or her certain discounts based on “preferred customer” status, most home buyers will opt for the best loan terms possible regardless of the lender.
However, the fact that a home buyer might have obtained mortgage financing from a given lender pursuant to terms and conditions she or he considers reasonable, and adhered to the repayment terms of that loan – as was required and expected – does not mean she or he is obligated to refinance with or, when the time comes, accept the mortgage renewal terms offered by that lender, since the renewal or extension could easily be on much the same or slightly better terms which can easily outmatched by another lender in an improved mortgage market.
Mortgage Renewal: How it Works
With every mortgage renewal start thinking about your needs and goals
1. Begin early
Has your own financial position altered since your previous renewal?
Have you been thinking about any kind of home renovations or makeovers and will be in need of extra cash?
Are you considering relocating over the following 12 months?
Would you favor fixed or variable rates?
2. Get in touch with your mortgage broker
3. Think about renewing as soon as possible and within 120 days
4. Make the decision that is appropriate for you
Try our calculators for choosing the right options
Most homeowners understand that interest rates fluctuate on a continual basis, and what might have been a good deal five years ago, when they purchased a new home and took out the original mortgage, might certainly be a less attractive deal today as mortgage renewal time approaches. What’s also very clear to homeowners is the kind of commitment – in terms of time, money and diligence – required to finance a home based on actual experience, and such a commitment carries with it an inclination to explore available options.