Of Prime Interest: Don’t waste mortgage renewal opportunities

A mortgage renewal is your opportunity to make changes to your mortgage without incurring a penalty.

  • Jun. 16, 2015 9:00 a.m.

Every mortgage has a specific term, guarantee of a set interest rate for a period of time.

When a term is coming to a close, most banks will send you a mortgage renewal notice.

Mortgage renewals are one of the most neglected decisions made during the life of a mortgage.

Many homeowners stay with their existing mortgage lender because they believe it is too time consuming to shop around for a better rate.

Rates available to a mortgage broker are often as much as 1.95 per cent below the banks posted rate.

That calculates into a savings of over $311 per month based on a $250,000 mortgage. Over a five-year term that will save you $27,800.

As well,  you can be pre-approved up to four months prior to your mortgage coming available for renewal.  This is the best of both worlds for you—a pre-approval will guarantee you the rate for up to 120 days and if the rate goes lower during that period you get the lower rate.

A mortgage renewal is your opportunity to make changes to your mortgage without incurring a penalty.

Options include to increase or decrease the mortgage amount, choose a new payment frequency, change the amortization or the type of mortgage.

The various types of mortgages available include fixed terms (six month to 10 year terms), variable rate mortgages or a line of credit.

For example, if you are in a fixed rate product you could at this time easily switch to a variable rate mortgage or line of credit or vice versa.

If you have any high interest loans or existing credit card debt now might be the time to pay them off and include them in your mortgage.

If you are increasing your mortgage at renewal lenders will take into consideration your credit history, annual income, employment history and property value to determine your qualifications.

You may also have extra cash available, which at renewal time can be applied to pay down the principle without an interest penalty being tacked on.

Mortgage renewal time is a great opportunity to make the changes that are reflective of your lifestyle today.

Just Posted

Okanagan Eats back for another year

Okanagan Eats features vendors, chef demos, and so much more. This isn’t your average food show.

Kelowna landfill flooding

The ground is soggy at the Kelowna landfill

Open letter to Premier John Horgan

LETTER: Group called First Things First Okanagan promotes action on climate change

Earth Day efforts undertaken in Coldstream

Society to Keep Kal Lake Blue cleans up Coldstream Creek, Girl Guides pick up trash on Silver Star Road

Lake Country to get a new winery

A development proposal was approved Tuesday by council

Lt.-Gov. Guichon believes she made the right decision

Outgoing Lt.-Gov Judith Guichon said her most memorable moments weren’t surrounding the election

Salmon Arm RCMP arrest one male on child pornography charges

Search of Canoe residence leads to seizure of computers

Highway 33 to re-open Friday

Traffic expected to resume at around 7 p.m.

VIDEO: Smokers talk pot rules at annual 4-20 event

Annual pot protest-meets-festival in Vancouver attracted hundreds to vendors, concert

New funds, recruits set to alleviate B.C. sheriff shortage

The Government of British Columbia announced new sheriff graduates, funding for more classes

Farnworth says five years too long for feds to deal with organized crime in medical pot

Needs to be dealt with much sooner than that, B.C. Public Safety Minister says

UPDATED: Unions, CP Rail come to agreement, avoiding work stoppage

Locomotive engineers, conductors and signals specialists seeking new collective agreements.

B.C. woman known to hitchhike around province missing

Aislynn Hanson, 18, last seen April 13; known to travel throughout B.C. by hitchhiking

B.C. court relies on Facebook to track down missing defendant

A court in Princeton, B.C. relied on Facebook to track down a B.C. missing his court date

Most Read