MYLENE LIM , AMP Licensed Mortgage Specialist
When you were applying for your mortgage , you went about it like pro – you shopped around for the best product suited to your needs , reviewed the terms and conditions and negotiated for the interest rate . Or perhaps , being a new buyer , you were just happy to be approved for a mortgage – any mortgage at any rate . Then you just sat back and enjoyed your home for the last five years or so . And now you got a notice in the mail that your mortgage is up for renewal …
What should you do ? Do you just assume you are being offered the best
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product after your last negotiation five years ago and sign on the dotted line ? Of course you should not ! It ’ s a new ball game altogether so you have to do your due diligence to find out what products are available for you in your present situation .
1st consideration : Are you just wanting to renew your existing mortgage or do you want to take advantage of your increased equity to take out some money against your property . The first option is considered a renewal while the second option is considered a refinance or equity takeout . A renewal is generally straightforward with minimal documentation while a refinance would require you to submit
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income documentation , get a credit record check and a new appraisal of your property .
2nd consideration : What is the best rate available for you ? Oftentimes , your lender would send you a renewal rate that may not necessarily be the lowest they could offer . They do this because they know that a lot of borrowers do not know any better or that borrowers do not want to go through the hassle of negotiating for
a lower rate . A few hours reviewing different options may save you hundreds , if not thousands , on your mortgage payments .
3rd consideration : By now you ’ ve been down this road a few years so hopefully you have gained
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some insight that not all mortgages are the same . You now have an idea that you could have more flexibility with regards terms and conditions of your mortgage . You can go for variable instead of fixed rates or vice versa . You can go for 30 or 35 years amortization instead of 25 to lower your monthly payments and alternatively you can opt for shorter amortization period . You can opt to pay a bigger lump sum amount at each calendar year to pay off your mortgage faster . You can opt for a product with minimal penalty if you want to break the mortgage early .
There are so many lending institutions in the market with so many products for you to avail of .
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Without the added stress of a home purchase and with more time to review your options , there is no reason for you to just sign on the dotted line when that renewal notice comes in the mail . Take the time necessary to sit down with an experienced mortgage professional to go what the industry can offer you .
Mylene Lim is an
experienced licensed mortgage broker at Dominion Lending Centres – Clear Mortgage . She specializes in arranging very competitive residential and commercial mortgages
for her clients . For more information , please contact her at Cel : ( 604 ) 783 9097 ; Email : mylene . mor tgage @ gmail . com ; Web : www . BestOptionMor tgages . ca ; FB : Mylene Lim , AM
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