Updated: Sep 25
When your mortgage comes up for renewal, it can be tempting to simply accept the renewal offer from your current lender and move on.
But a lot can change during the time you have your mortgage. Your income, expenses, family, debts, financial goals, and the value of your home may all look very different than they did when you first signed your mortgage.
That's why a renewal is a good opportunity to step back and look at the bigger picture.
Don't Just Look at the Rate
Interest rate is important, but it isn't the only thing to consider.
The right mortgage also depends on the term, payment structure, prepayment options, penalties, flexibility, and whether you may need access to your home equity in the future.
A slightly lower rate isn't necessarily the best fit if the mortgage comes with restrictions that don't work for your plans.
Your Options May Have Changed
You don't necessarily have to stay with your current lender when your mortgage comes up for renewal.
Depending on your circumstances, you may be able to negotiate with your existing lender, switch lenders, or explore refinancing.
For example, you may want to consolidate higher-interest debt, access equity for renovations, or restructure your mortgage around a change in your financial situation.
Start Before Your Renewal Date
Don't wait for the renewal letter to arrive before looking at your options.
Starting early gives you time to compare what's available and make a decision based on your current financial goals rather than simply signing whatever lands in your inbox.
If your mortgage is coming up for renewal, let's take a look at your options together.
