The mortgage renewal process is a critical component pertaining to homeownership that allows you to renegotiate the original terms of your existing mortgage, including the duration of the loan, interest rates, and the payment schedule. The process may seem intricate or complicated at first but this blog was designed to help elaborate on those intricacies in nuance. Understanding the mortgage renewal process is a critical element in helping you make well-informed decisions about your home financing. In today’s blog, we’ll provide a step-by-step guide to the mortgage renewal process.
Step 1: Check mortgage contract
Before all else, especially initiating the mortgage renewal process, check your current mortgage agreement. Familiarize yourself with the mortgage terms, including interest rates, loan balances, and payment schedules. This information will be essential in helping you determine if you need to renegotiate the terms of your existing mortgage and evaluate your need to switch lenders.
Step 2: Decide on update options
Once you fully understand and confirm your mortgage agreement, you can seek to renew your mortgage with your current lenders, change your lenders, or renegotiate the existing terms of your mortgage. Each option has its own upsides and downsides, the weighing of which depends entirely on your personal financial goals. It’s important to understand your options so you can determine the best one to take.
Step 3: Check home loan interest rates
Should you swap lenders, do check the existing interest rate on your current mortgage. Explore and expand your options by procuring quotes from multiple lenders, comparing interest rates, fees, and terms so you may know your next best course of action from there based on what suits your needs, budget, and financial goals.
Step 4: Negotiate with the landlord
If you seek to renew your mortgage with your existing lender or to renegotiate the terms, you will need to engage in a conversation with your existing lender. Be prepared to bargain over interest rates, payment schedules, and loan terms. We also suggest seeking out competitive interest rates from other lenders, there may be more advantageous options in that pocket to capitalize on when haggling with your current lender.
Step 5: Submit application
Once you’ve settled on a renewal option, the next step is the submission process of your application. This is where and when you ensure that you have all the required documents in front of you, such as: Employment information, proof of income, credit history, property valuation. Accurate information can speed up the application process.
Step 6: Conclude mortgage extention
If your application is endorsed, you should now conclude your mortgage extension by signing a new mortgage agreement and paying the associated fees, including but not limited to: Assessment Fees, Attorney’s Fees, and Title Insurance Fees. Lenders or mortgage brokers can help you understand the closing process and ensure a smooth transaction
MortgageSquad is a leading mortgage brokerage that can help simplify the mortgage renewal process. We have a team of experienced mortgage professionals who can help you understand your options, shop around for rates, and negotiate with lenders. For example, one of our customers was able to renew her mortgage with a lower interest rate and save over $1,000 per year on her mortgage payments.
If you want to learn more about the mortgage renewal process, check out these helpful articles by TD & Cheryl Wilkes:
In conclusion, renewing a mortgage is a significant decision that requires careful consideration and planning. By understanding the mortgage renewal process, you can make informed decisions about your home financing and achieve your financial goals. Contact MortgageSquad today to learn how they can help simplify the mortgage renewal process and save you money on your mortgage payments.
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