While most Canadians spend a lot of time, and expend a lot of effort, in shopping for an initial mortgage, the same is generally not the case when looking at mortgage term renewals.
Nearly 60% of borrowers simply sign and send back the renewal that is first offered to them by their lender without ever shopping around for a more favourable interest rate.
Homeowners should never accept the first rate offered by their existing lender. By signing up for the market rate on a renewal, without attempting any negotiation, homeowners can end up paying exorbitant amounts of money for absolutely no added value.
Generally it is a good idea to start shopping for a new term between four and six months before your current mortgage term expires. Many lenders send out your renewal letter very close to the time that your term expires and this does not give you ample time to arrange for a mortgage term through a different lender.
This means that you need to be tracking your own mortgage term timeframe, and enlisting help, to ensure that you have enough time and support to find the best mortgage renewal rate.
The information noted above is not exhaustive: additional documents and/or information may be requested when you apply for a mortgage. The Required Mortgage Documents Checklist has been developed for guideline purposes only.
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