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.
Required Mortgage Documents
Employment and Income Verification
- Current employment and amount of income such as:
- Copy of recent pay slips
- Evidence of recent pay deposited electronically
- T1 General and associa
- Previous employment (if required)
- Additional income sources (if any)
- A list of current assets and liabilities
- Bank account and transit number for payments
Confirmation of Your Down Payment
- Savings or investments statement from within the last 90 days
- Sale of an existing property – a copy of the sale agreement
- Withdrawal from RRSP through the Home Buyer’s Plan, if applicable
- Gift Letter
- A copy of the real estate listing
- A copy of the accepted purchase and sale agreement
- The property’s full address, including legal description and postal code
- Property tax estimates, condo fees and heating costs, (usually available on the real estate listing)
- For rural properties, well and septic certificates
- Lawyer’s name, address, postal code, telephone and fax number