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(Oct 1, 2023)

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The maturity of your mortgage term can be both a moment of uncertainty and an opportunity for financial reassessment. As homeowners, we all reach this juncture sooner or later. So, what should you do when your mortgage is coming due? This blog aims to guide you through the essential considerations, options, and steps to help you make an informed decision that aligns with your financial goals and circumstances.

Assess Your Current Financial Situation by completing a mortgage application with an experienced mortgage broker

By completing a mortgage application with an experienced mortgage broker, you are inadvertently initiating the beginning stages of an in-depth personal financial assessment. Not only are you inputting your application details, but you are doing so into a powerful mortgage adjudication software that calculates your debt service ratios, net worth, and many other critical and eye-opening metrics. Additionally, upon completing your mortgage application, a mortgage broker will also inquire about and retrieve your most current credit rating – this is likely the most critical metric of all, as many people are often unaware that they may be trending in a negative direction that could ultimately damage their credit score and set them up for failure down the road. So, when your mortgage comes up for renewal, take advantage of this opportunity and, at the very least, engage with an experienced mortgage broker to summarize and offer perspective about your current financial standing. The end result is always positive; you either feel validated that you are on the right path, or, more importantly, you are happy that a weak spot has been identified so that it can immediately be remedied, thereby keeping your score on a positive trajectory into the future. Again, I cannot stress the importance of this—seize the opportunity of your mortgage renewal window and seek the services of an experienced mortgage broker for a free consultation.

Understand Your Mortgage Terms:

A mortgage broker plays a critical role in helping mortgage holders fully comprehend the intricacies of their existing mortgage agreement, including terms, conditions, interest rates, payment schedules, and potential penalties for early repayment. Mortgage brokers are well-versed in a wide array of mortgage products from various lenders, providing invaluable expertise. By not seeking the services of a mortgage broker and blindly accepting your current lender’s offer, you may miss out on countless opportunities and tailored solutions available to you. Utilizing a mortgage broker is undeniably in your best interest, take advantage of this opportunity and contact your go-to mortgage broker, or use it as an opportunity to start a relationship with a mortgage broker.

Explore Your Mortgage Renewal Options:

When your mortgage is coming due, one option is to renew your existing mortgage with your current lender. They will typically offer you a renewal package with terms and interest rates. However, this is also an opportunity to negotiate for better terms or explore other options with different lenders. Seek the services of a mortgage broker, this will guarantee more exposure to other lenders. More lenders equates to more offers which ultimately equates to lower rates!

Consider a Refinance rather than simply renewing:

Mortgage renewals, in contrast to mortgage refinances, involve maintaining your current mortgage balance and keeping the existing amortization schedule intact. During renewals, no other changes to the mortgage are typically allowed, including the addition or removal of individuals, increasing mortgage funds, or consolidating debts. It’s a straightforward process aimed at updating the terms and interest rate without altering the core structure of the mortgage. Requalification is not required, just a simple signature for acceptance.
In contrast, mortgage refinances offer a range of flexibility and options for mortgage holders. When refinancing, you can make several changes to your mortgage, such as extending the amortization period to reduce monthly payments, accessing extra funds to address outstanding debts, adding or removing individuals from the mortgage, among other possibilities. However, it’s important to note that choosing to refinance requires re-qualification, which entails providing updated income documentation and undergoing a credit check once again to ensure eligibility for the new terms and adjustments.

Use a Mortgage Broker!

Mortgage brokers deal with and represent several lenders, this is a huge benefit to you! Don’t simply take the word of your lender, they only offer their own product and rate…they are definitely aware of the competing offers, but they are not obligated to offer them to you. Many renewal offers state their higher posted rates rather than their fully discounted rates. Always call a mortgage broker to (at the very least) ensure that the rates that are being offered to you are even competitive. Make the call, you’ll be glad you did.

Is your mortgage coming due? Wondering what to do? Call or text Marko Gelo right now at 604-800-9593, or Click Here to schedule a free, no-obligation phone call with Marko. You can also call Marko on WhatsApp.

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