Mortgage Renewal

Your Lender Does Not Offer Best Renewal Rates

Banks and lenders are in business of making money. According to statistics 60% of Canadians (source: Canada Mortgage and Housing Corporation) sign renewal letters and mail them back. If banks can get 60% of their customers to renew at 7% rate instead of 6% rate - they will do it.

To get lower interest rate, follow this strategy:

First - contact mortgage brokers. Ask them for the lowest rate you can get. Mortgage brokers always have access to lower rates then you're aware of, so once you get the quote, call your original lender. When you speak to your lender say that unless he matches broker's quote, you'll leave. In many cases your lender will comply and match or beat broker's rate.

If your lender does not match quoted rate, you can leave, because savings over years add up to thousands of dollars

Get rate quotes from mortgage brokers in your area. We can also arrange renewal if you're ready for one.

You Can Save $50 - $200 on Monthly Mortgage Payments and $15, 000 - $40,000 Over the Years

Examples above for $150,000 mortgage on a 20 year term (240) months.

This realistic example shows you can save $155 per month, by renewing at 1.9% lower than bank rate. It makes sense to do it. The process requires few documents and a little of your time.

Renewal Is Free

Renewal is free. There are NO penalties for mortgage renewal.

Renewal sometimes requires new home appraisal, which is $300 - $600. If you never missed mortgage payments, and have good credit, lender will take care of this cost. There's also a "discharge fee" $100 - $200, a document that confirms you have a new lender. You don't have to pay this.

When you might pay for mortgage renewal:

• If you have credit problems, you might have to pay mortgage renewal costs (not always, contact to be sure).
• If you want larger mortgage be prepared for around $1000 in fees (mostly legal).

Mortgage Renewal Takes 3-5 Day

Mortgage renewal takes 3- 5 business days if you have all the papers ready, like verification of income, insurance statements, appraisal report, property title, mortgage charge and annual mortgage statement. View all documents required for mortgage renewal.

Credit Score and Mortgage Renewal

Higher credit score will get you lower renewal rate. Lower credit score will get you higher renewal rate. Learn in detail about mortgage credit score and factors that affect it.

Documents You Need to Renew a Mortgage

• Credit score application (Credit Authorization Form), to find out your credit score.
• Verification of income from your employer.
• Copy of the latest insurance statement for the property.
• Document which confirms there is a mortgage registered on the property (Mortgage Charge).
• Copy that confirms your ownership of the property (Property Title).
• Copy of the most recent mortgage statement which shows: name of the lender, mortgage reference number, approximate mortgage balance, current monthly payment and mortgage renewal date. Annual Statement is perfect for this.
• Copy of a new appraisal report.

Self Employed:

If you're self employed, instead of income verification lenders require 3 year Notices of Assessment, to make an average of your income.

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Mortgage interest rates are subject to change without notice. We attempt to maintain accuracy on our website, however, mortgage information on this website should be used only as a guideline. Please consult a mortgage professional before taking any action.