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(January 19, 2023)

Mortgage renewal time is often a celebratory moment for a homeowner as it marks the end of another successful tenure of completed principal and interest payments. However, these days are a totally different story. With all the aggressive rate hikes in 2022, many mortgage holders are wondering how their next mortgage term will feel like. Will your payment remain the same, or will it skyrocket?

If your mortgage is approaching its maturity in the next 12 months and you’re wondering what things will look like for you, reach out now to begin strategizing – while time is on your side. Reply to this email right now, or Click Here to schedule a call with Marko Gelo.

Why start planning 12 months ahead of your maturity date?

Take time to prepare and plan. The actual renewal date is a limited window of opportunity that allows the mortgage holder to make changes to their mortgage (without incurring a fee/penalty). More importantly, it is critical to understand that this window of opportunity is only available for 24 hours. So whatever change you want to make to your mortgage (debt consolidation, equity take-out, extended amortization, etc), you need to ensure all your ducks are in line. For most mortgage holders, the renewal date sneaks up on them without warning and leaves them no time to consider other options or solutions. And in order to avoid late charges or auto-renewal to a much higher interest rate mortgage, the mortgage holder resorts to the path of least resistance and opts in for one of the default options bestowed upon them from the lender. At this stage of the game, you are not in a position of power. Prepare and plan AHEAD of your maturity date.
Gearing up ahead of your maturity date also allows you time to repair or improve any shortcomings in your application if you are planning a product change or departure from your existing lender at renewal. For example, starting the process at least 6 months ahead gives you time to identify, diagnose and repair a credit issue (6 months is a minimum, but 12 months is ideal). This is critical because had you not corrected the issue, you may not have qualified for what you had in mind. Just as an athlete performs stretches to prepare ahead of a crucial match, so does a mortgage applicant in anticipation of submitting for approval.
Prior to your maturity date, register for Marko’s Renewal-Rate Tracker which ensures your application is constantly being tendered to the market. The Renewal-Rate Tracker seeks out the best rates in the market and locks you in for 4 months – and it doesn’t stop there! Even though you may be locked in for a rate, the tracker continues to scour the market in the event rates drop further. To register for Marko’s Renewal-Rate Tracker, send an email to teamgelo@mortgagecentre.com and type, “Register Me for the Tracker!” in the subject field.
and lastly, some lenders allow for a reduced break penalty in the final year of their term. So depending on which lender you are currently with, it may make sense to break out of your term ahead of your maturity date to transfer to another product or lender.

If you or someone you know is within one year of your mortgage renewal, call Marko right now (or Click Here to schedule a call) to begin preparation for your next term.