Mortgage Renewal Options

When your mortgage reaches its maturity date, it's time to re-negotiate your interest rate. In most cases, your existing mortgage lender will make you a mortgage renewal offer that is usually not a competitive interest rate.

Contact me to get a lower rate that you truly deserve. Most lenders now offer "no cost mortgage switches/renewals". Also keep in mind that many Canadians need to review their financial situation at the same time of their mortgage renewal. This is often a time to consider a mortgage refinance to eliminate high interest credit debts and for other reasons as well.

Which Mortgage Products ,Terms & Payment Options should you choose?

Every client scenario is unique and requires a full review of your existing mortgage, property value & financial profile. I will assess your current situation and needs to find the best mortgage for you at a fully discounted mortgage rate. 

Short-term and Variable Mortgage

If rates are low and stable you can generally pay a lower rate with a short-term or variable rate mortgage. You may roll over your term every 6 months or float your rate against prime, with the option of locking in to a longer term at a later date, with fully discounted mortgage rates.
 

Long-term Mortgage

Any term 3 years or longer is considered "long term" in today's economy. You will have the comfort of knowing exactly what your payments will be and you will be able to manage your budget accordingly. When mortgage rates are low, you can take advantage of securing them for a longer period of time.

Mortgage Prepayment Options

Many lenders allow you to make a lump sum payment — usually 10% to 20% of the original principal balance. In addition, many mortgage products now include a "double-up and skip-a-payment" feature. This lets you "bank" extra mortgage payments for a rainy day, at which time you can "skip" them if you need to.  

Mortgage Payment Changes

Most mortgages now allow the amortization to be adjusted by increasing the payment on closed terms by 10% — 20% per year, once annually. 

Mortgage Payment Frequency

Most mortgages now come with the option to pay your mortgage at a frequency that matches your cash flow — weekly, bi-weekly or semi-monthly. The added benefit of the "accelerated" weekly and bi-weekly payments is that by dividing a regular monthly payment into two or four respectively, and deducting it at the new interval, an extra mortgage payment a year is made directly against principal. The surprising effect of this one extra mortgage payment a year is to reduce the amortization of the average mortgage by approximately 5 years, with cash savings at the end of the mortgage term.