When your mortgage term ends and you still have a balance showing, you will need to renew your mortgage. But the benefit of this is that you will have the opportunity to assess your current mortgage and compare various different offers before you make a choice.
When your current mortgage is about to end your mortgage provider in Guelph will send you a renewal slip that you can simply agree to, sign and send back. But you don’t necessarily have to do this, as you can first shop around and see what other lenders have to offer.
It’s always a good idea to start shopping around four to six months before your current mortgage term ends. If you don’t find any suitable offer, you can then simply renew your lease period with your current lender. However, this will give you more than enough time to consider all the options from other lenders, including what the terms of their agreement are, the interest rates they offer, as well as the repayment options you have available.
Consider Your Finances
Many things can happen throughout your current mortgage term, and your financial position may be different from what it was in the beginning. Your financial goals may also be different now, so keep this in mind when extending your mortgage in Guelph.
You may have a child that’s off to university, you may have lost some of your income, or you may even need to access some equity. Also associated or not you are likely to move in the next few years comma if this will also have an impact in your decision full stop nearby
Determine Your Mortgage Needs
In addition to your financial goals, you should also make a list of what you are looking for in a mortgage. Here are a few important questions to ask:
- Do you have room in your monthly budget for your new mortgage payment?
- Do you think you will get any extra funds such as an inheritance or a bonus?
- Do you think you’ll be able to pay off your mortgage during your new term?
- Do you think you may want to sell your home soon?
- Do you think you may need to borrow money from your lender?
Make the Decision
Once you have weighed up all your options, make a decision and choose a lender you want to go with. Ask yourself who is offering you the best mortgage product at the best rates comma and try to negotiate the best deal you can to move forward full stop
When it is time to renew your mortgage, speak to the Guelph team at Mortgage Guys. We specialize in mortgage applications and can help you to choose the best mortgage product available.