Where should you begin? First off know your mortgage Renewal Date and start the process 6 months out. Be proactive and don’t accept what your current lender offers you just because it is convenient. Do your research and lock into a rate 120-180 days prior to your mortgage renewal date. This move will give you time to watch the rates. If rates go up you are guaranteed your pre-approved rate and if rates go down you can take advantage of lower rates.
Always remember your best deal may not be the best rate – take into consideration the prepayment options and flexibility of your mortgage. Fixed or Variable? 3 or 5 year term? Is my mortgage portable? What are the penalties if I should break the mortgage? Are there any fees at renewal?
Given the interest rate hikes in the last year it is most likely that you will be renewing at a higher rate along with a higher payment. Can I increase my amortization to lower payments? Is now the time to opt for a variable rate?
Renewing your mortgage is your best opportunity to secure a better deal, save money and take advantage of the changes you can make at renewal that will make the most of your homeownership journey.