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March 21, 2022

Don’t Renew Your Mortgage Blindly

Don’t Renew Your Mortgage Blindly

When you were shopping for your first home you didn’t just jump headlong into the first property you laid eyes on and lock yourself into the first mortgage rate you came across online, did you?


When you were shopping for your first home you didn’t just jump headlong into the first property you laid eyes on and lock yourself into the first mortgage rate you came across online, did you?

Transcript

When you were shopping for your first home you didn’t just jump headlong into the first property you laid eyes on and lock yourself into the first mortgage rate you came across online, did you?

Most of us take the time to shop around to be sure that we are getting the best product for our needs. But then why do we see such a trend toward homeowners blindly renewing for another 5 years when their term expires rather than finding the mortgage that works best for them now?

Whether it is years away or just around the corner, your mortgage renewal will have a pesky way of sneaking up on you. You’ll open your mail around 90 days before your term expires and - boom! There will be a shiny letter from your current lender offering you a seemingly attractive rate and fresh new term, all packaged up nice and easy to complete. They’ll just ask for a few documents, a signature on the dotted line to be locked right back into your next term - so that has to be the only option, right?

Wrong.

Not only is renewing with your current lender not your only option, but in many cases it might not be your best one either! There are as many (if not more) variables to consider whether you will renew with your lender as there were when you purchased your home. Of course, it’s important to consider your rate, but what about your current financial goals? Could you envision a move before this next term reaches maturity? Then a variable product with little to no payout penalties could be right for you this time. Or maybe you’re thinking of making some upgrades on your current home and now would be the perfect time to access some equity via a refinance!

Even if your current term doesn’t end for years, it is never too early to start thinking about your next step. With rates already on the rise and property values still sky-high it’s a great time for us to connect and lay out a plan for your next 5 years!

Let’s connect and review your mortgage needs today