Mortgage Renewal

The process of Mortgage renewal

Mortgage renewal is a very simple process when compared to other types of mortgages and their terms and conditions. But this does not, in any way, mean that we shouldn’t put as much effort as we did while acquiring the mortgage in the first place. The mortgage renewal process starts once your term has ended. But, mortgage experts say that the process for mortgage renewal actually starts at least four months in advance.


Mortgage renewal process


These are the Four steps involved in the Mortgage Renewal process:

Step 1: Understand your needs:

At that particular point in time, what are you looking to get out of your life in the next five years? This is a very important question as it can help you determine what kind of rates and schemes you are looking for. If you are planning to go for a big investment in the future such as your child’s education, then you need to go for lower rates. But if you have gotten a raise, you can opt for higher rates in your mortgage renewal contract.

Step 2: It’s time to shop!

Most of us would have our date of maturity for the mortgage marked on our calendar. We just need to start shopping for rates four months in advance of this date. The shopping process begins with you contacting a mortgage broker. You can consult with them and decide what rates would be the best for you and from whom you can get them. The broker will work to get you a good deal for your mortgage renewal.

Step 3: Compare and decide:

After you have shopped around and have gained enough knowledge, you need to compare all the rates you have seen and decide on the mortgage renewal plan. The lowest rates are sometimes not the best. Consider all the factors of cost and time. The penalties and other terms also need to be understood. Take your time to decide. If you start shopping early, you can make a well-informed decision in the last 30 days before maturity.

Step 4: Sign on the dotted line:

After you have decided on the mortgage renewal plan, all you have to do is a sign. Take the contract from your lender and sit with a mortgage broker to understand if it has been done according to your plan. Consulting a lawyer isn’t a bad idea either. If everything seems fine, go ahead and sign.

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