If you are a current homeowner and your amortization period is approaching its maturity date, you may want to start considering what you should do about your Edmonton mortgage. If you have not paid your loan off in full, you should consider renewing your mortgage. This is a process that most borrowers apply for until they no longer have a balance on their home loan.
So, to help provide some guidance, your local broker with The Mortgage Group has listed some useful tips for renewing your mortgage.
Tip #1: Start The Process Now
You do not have to wait and apply for a mortgage renewal once your loan term is about to expire, instead, start the process now. Most Edmonton mortgage brokers suggest looking for different rates about four to six months before the end of your term. Since rates are currently projected at an all-time low for the year, it would be in your best interest to lock in a rate now before your amortization period ends and the rates increase.
Tip #2: Shop Around
Once you decide to renew your mortgage, you do not have to use the same broker who facilitated your loan for your mortgage renewal. Therefore, take the time to shop around and speak with a variety of different brokers to see what type of rates they are offering. That way you can confidently choose the broker who is offering you the best option for your financial goals.
Tip #3: Do Your Research
Before you begin the renewal application process, make sure you do your research so you know what your options are. Determine how long of an amortization period you need and whether or not you want a fixed or a variable interest rate. A fixed rate generally has a higher interest than a variable rate but you have the security of knowing your rate will never change. If you choose to have a variable rate, this amount can fluctuate depending on the market, thus making it harder to accurately budget your finances.
Tip #4: Do Not Accept The Posted Rate
The posted rate is not always the lowest rate on the market, so do not accept this offer as soon as it is presented to you. Instead, negotiate with your Edmonton mortgage broker and ask for a better rate.
If you would like to receive more information on tips for renewing your Edmonton mortgage, please contact The Mortgage Group at 780-433-8412.