What is Mortgage Renewal?
Ever wonder what happens when your mortgage term wraps up? That’s where mortgage renewal comes in. In mortgage renewal, you get a chance to renegotiate things. This means that you can go for lower interest rates, change the mortgage type, or choose another lender to borrow a mortgage.
How Does Mortgage Renewal Work in Ontario?
Mortgage renewal in Ontario is a process that begins as your existing mortgage term nears its end. The lender will typically send you a renewal offer at least 21 days before the end of your current term, which you can accept or negotiate.
Early mortgage renewal in Ontario is possible and can be advantageous if current market rates are lower than your existing mortgage rate. However, early renewal may involve penalties, so it’s critical to weigh these costs against potential savings.
Benefits of Mortgage Renewal in Ontario
Mortgage renewal offers homeowners numerous benefits. This is your chance to renegotiate terms with the goal of getting a reduced interest rate, which could result in significant savings over the course of the loan. Additionally, it offers the flexibility to modify payment plans to accommodate evolving financial circumstances and presents a chance to combine loans with high interest rates.
If you’re dissatisfied with your current lender, renewal is a chance to switch to a new provider. Finally, if your home’s value has increased, renewal could be a time to tap into this equity for other uses, such as home improvements or investments.
Why Choose Enrich Mortgage Group in Ontario for Your Mortgage Renewal?
Mortgage renewal time can be a bit of a head-scratcher, right? But it doesn’t have to be. Here at Enrich Mortgage Group, we’re all about making your mortgage renewal journey in Ontario as smooth and straightforward as possible. Our experts will guide you through the process, ensuring you’re well-informed about all costs and potential savings related to your mortgage renewal.
Our team has got industry knowledge and is super keen on sharing it with you. We’ll walk you through the whole mortgage renewal process, breaking down each step so you’re never left in the dark. It’s all about helping you make a choice you’re not just okay with, but really happy about. That’s our mission when you renew your mortgage with us.
See Other Services
Purchase
We’re your partners in the home-buying process in Ontario. Our team offers expert advice on mortgage options, helping you make informed decisions every step of the way.
Pre-approval
Looking for pre-approval in Ontario? We’ll give you a clear understanding of your borrowing power to confidently pursue your dream home.
Refinance
Looking to refinance in Ontario? Our services are tailored to help you benefit from lower interest rates, access your home equity, consolidate debt, or fund home improvements, all aligned with your unique financial needs.
Home Equity Line of Credit (HELOC)
Need flexible financing in Ontario? A HELOC lets you use your home’s equity for renovations, education costs, or other big expenses, all while keeping monthly payments manageable.
FAQs
1. Will my mortgage automatically renew in Ontario?
Not always. You will get a renewal notice before your term ends. If you don’t take any action, it may automatically renew.
2. How does a mortgage renewal work in Canada?
Mortgage renewal in Canada is like a checkpoint. When your mortgage term ends, you can either renew with your current lender or look for a new deal elsewhere. It’s an opportunity to renegotiate terms, and rates, and maybe even switch lenders for a better fit.
3. Do you have to requalify for a mortgage renewal in Canada?
Usually, you don’t have to go through the full qualification process again for a mortgage renewal with the same lender. However, if you’re switching lenders or making significant changes to your mortgage terms, a new qualification process might be required.
4. How many Canadian mortgages are up for renewal in 2024?
The exact number can vary, but typically, a significant portion of Canadian mortgages come up for renewal each year. Specific figures for 2024 would depend on the lending trends and housing market conditions in the previous years.