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When your mortgage comes up for renewal don't let a lack of information be the reason you end up with a mortgage that does not meet your current needs. Most lenders will send out mortgage renewal notices to their clients and over 70% will simply complete the form, sign it, and send it back to the lender with no questions asked. Lenders are counting on the fact that most home owners are too busy to ask questions or to inquire about getting a better rate, but don't let this happen to you!
Remember when you applied for your first mortgage? You asked questions, did some research, talked to a mortgage broker, and found the best mortgage rates and options to suit your needs. Why should it be any different when it comes to your renewal? Interest rates are at an all time low, so why not take advantage of the current market and get a better mortgage rate that could save you money in the long run?
There are some legalities to understand when renewing or switching your mortgage to another lender, but don't let this discourage you from finding out more. Many lenders offer "no cost" or "low cost switches" which often end up giving you a better interest rate and even reducing your interest payments over the life of your mortgage.
When you renew or switch your mortgage, you are simply starting the mortgage process from the beginning. You close out the existing mortgage and take out a new one at a lower rate with a lower principal amount. The renewal process is as important as the first time you obtained a mortgage or maybe even more so because your personal situation has most likely changed since that first time. This is the perfect time to re-assess your needs and find a mortgage that suits the current you.
Rules regarding mortgage switching may vary from Province to Province, so consulting a mortgage broker is recommended. Mortgage brokers make it their business to know all of the current market information so they can fully explain the switching process to you. Mortgage brokers also have access to a vast network of lenders and will work to find you the right mortgage at no cost to you. (See: Mortgage Renewal Application)