Mortgage Renewal
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Renewal of Your Mortgage
Just about every 5 years or 60 months time , Canadian residential home owners have got a mortgage loan due for a renewal. This can be a time to spend looking at a few critical components including the existing mortgage rate environment in Canada, whether or not you will be keeping your home or selling , as well as your overall financial health. You’ll typically have about 30-120 days before your mortgage renewal date to get started on searching for the latest home loan rates. Try to secure a rate hold early as you possibly can, as you never know when mortgage loan rates may possibly rise.
IMPORTANT: What To Consider Before Renewing
- Do you have any other debts with high interest or payments you would like to pay off?
- Do you need money for renovations or home improvements?
- Need funds for any other purpose?
Now is the time to review your financial situation and look at a refinance transaction instead of a renewal. Many borrowers refinance their mortgage at renewal as it could be a great opportunity to payoff other debts and get cash out for different purposes. Talk to us today and get a review of your mortgage and specific needs. We offer a no obligation , free mortgage quote.
What is A Mortgage Renewal?
Once you initially obtained your mortgage, you chose an amortization period. Most mortgages in Canada have a 5 year term, variable or fixed rate, amortization of around 25 or 30 years. Most banks and lenders in Canada will renew your mortgage loan on the present amortization time period remaining. For that reason, when you started out having a thirty year amortization and 5 yr term , your mortgage loan will now be renewed or switched to a different provider with 25 years remaining on the mortgage amortization. If you want to change the mortgage back again to a 30 yr amortization for example, in an effort to decrease the payments, you will have to look at refinancing your mortgage.
Renewal Methods and Strategies to Consider
Your existing financial institution or bank will almost certainly give you a renewal offer about 2 months ahead of your maturity date. Most banking companies and lenders will not supply a really aggressive rate together with your mortgage renewal. Its the perfect time to talk to a mortgage broker who will possess a number of offers, mortgage rate specials and promotions as well as a high quantity of unique products that are available. Mortgage brokers can set up a mortgage transfer or refinance into a new financial institution who processes the transaction without having any fees involved for the process. Usually the fees will be covered by the new lender such as appraisal, legal and discharge for example.
If you are intending to sell the home shortly, you really should consider an open adjustable or variable product to prevent short-term penalties and then look at getting a fixed rate mortgage for a longer time afterwards. If you’re staying within your present household then you can go with a fixed or variable product with a longer time period or term.
Also take into consideration a home refinance loan at the time your renewal comes up for processing. In case you have current credit card and other debts, want money for an forthcoming renovation or for virtually every intent in which you could use income acquired from household equity. As your home loan is up for renewal, there would be no penalty expenditures incurred and that’s why you should normally examine your total funding needs and take into account mortgage loan refinancing at this time.
Look ahead to your upcoming mortgage loan renewal and think about your financial aims before committing to your new mortgage.
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 Increase
Most mortgages now allow the amortization to be adjusted by increasing the payment on closed terms by up to 100% per year.
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.
Mortgage Architects – Darin Bauer – Mortgage Broker
Out of 5 stars
Overall rating out of 19 Google reviews Verified by 
Darren is Bauer is great to work with. He helped me find a great rate is an very responsive.
10/10 for Darin at Mortgage Architects. Darin is meticulous, extremely organized and knowledgeable with a very strong work ethic. I have entrusted him to find me a new Mortgage as well as refinancing and he had always provided outstanding results each time. He is always on top of every detail, works quickly and gets things done right so I never have to stress! Best Mortgage broker you will ever work with!!
We would like to acknowledge the exceptional service that we received during the entire mortgage renewal process. First, Darin managed to secure us a great interest rate, then he was there every step of the renewal process with prompt emails every time there was an update. He handled everything thoroughly and efficiently. We wholeheartedly recommend him! Thank you Darin!
Darin is an established mortgage professional and we're thrilled with the level of service he provided our family. From the moment we were introduced, he provided prompt advice and solutions. He acted swiftly and gave us peace of mind with our home purchasing decision. We've worked with several financial professionals during our 15 years of home ownership and no one has been able to provide an outcome like Darin. We highly recommend him for all of your mortgage financing needs.
I am very happy that I found Darin during my search for refinancing my mortgage. Darin provided me very prompt and best service! We did not get a chance to meet in person, but he completed all paperwork online and everything was done fast and smooth. Thank you Darin!
Darin is professional and very knowledgeable.
Darin was very efficient with assisting us with our mortgage, providing options that many of the big banks could not offer. Really happy with his service and would recommend him to anyone.
Darin is fast and efficient to work with. He makes getting or renewing your mortgage a simple and uncomplicated process.
I worked with Darin for my mortgage in November 2013. Not only was he very proactive & professional, he offered me very competitive rates. The three things I most appreciated about Darin were that he went out of his way to get me a better rate than the one he had guaranteed me (many other brokers wouldn't have gone to the trouble and left me at the higher rate), he is very non-judgemental, and he contacted after my condo closed when I had issues with my taxes (my lawyer's issue) and helped me resolve them. I highly recommend dealing with Darin for all your mortgage needs. You will not be disappointed.
Very satisfied with his mortgage broker services. Darin helped me arrange my mortgage refinance and I was really happy with his professional service and low mortgage rates. He has lots of experience and knowledge about the mortgage industry. He had the best mortgage rates out of all the brokers and banks I contacted and a wide variety of lenders and products. As well, his service was very efficient by email and phone. The online application process was quick and simple, got the mortgage approval in less than 24 hours. Darin also has great contacts for lawyers and financial planners if you need one. Overall, it was a great experience working with him and I have already recommended him to family and friends. Thanks again Darin!
We worked with Darin when buying our first home, and then again when selling that one and buying another. Both times, we were very happy with the experience. He is very knowledgeable, on top of things always, very responsive, professional, and to the point. He got us excellent mortgage rates on both homes. We referred him to friends who were looking to buy, and they were also very happy to have worked with him. He is always willing to answer a zillion questions very promptly. Would definitely recommend giving him a call if you're looking for a broker who will look out for you!
Excellent service and I got a very low mortgage rate for my refinance. I contacted Darin to get approved quickly and he did so with ease. Very happy with the fast communication as well and the overall service I got , will recommend to family and friends!
I've had the chance to work with Darin on 2 separate deals. Both of my experiences with his services have been exceptional. I should add that I previously worked as a lender at an FI, so I have above average mortgage knowledge, which can be a detriment, because I ask a million and one questions and I'm overly detailed oriented on ratio, etc. Right from the beginning, he always answered all my endless emails at light speed. The first deal he helped me secure my mortgage when I first purchased my property 2 years ago. The purchase was rather complicated because it was Power of Sale, which meant I needed a fast close. I can't say enough how efficient Darin was in working with my Realtor and Lawyer. Adding a crazy work travel schedule to the mix, Darin worked with me between different time zones ensuring I could bump up my closing date within 7 days of getting my offer accepted by the bank. In mortgage closing time frames that is a record, organizing my mortgage docs, the lawyer, the Realtor etc. Even my Realtor doubted that this deal could close on time. Most recently I reached out to Darin with a simple inquiry, I needed to pull out equity for home reno's. Just to provide context on the time frame, I send Darin an email late Thursday night, Monday (3 business days later) I was already signing documents for the refinancing. Thanks for the fantastic service, I'm sure we will work on future deals. Happy Client, Liz