{"id":21991,"date":"2022-09-07T08:00:00","date_gmt":"2022-09-07T12:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=21991"},"modified":"2022-08-31T11:50:11","modified_gmt":"2022-08-31T15:50:11","slug":"save-money-on-mortgage","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/save-money-on-mortgage","title":{"rendered":"How to Save Money When Renewing Your Mortgage"},"content":{"rendered":"\n\n\n

Like most Canadians, you probably don’t think twice about your mortgage lender. After all, what’s the point of switching once you’ve signed on the dotted line? Well, as it turns out, there are plenty of good reasons to consider switching mortgage lenders \u2014 starting with knowing how to save money.<\/p>\n\n\n\n

For one thing, mortgage rates<\/a> can vary significantly from one lender to another. By shopping around and comparing rates, you could save yourself thousands of dollars over the life of your loan. So let’s go in-depth and guide you through switching lenders to save money when renewing your mortgage.<\/p>\n\n\n\n

What It Means to Renew Your Mortgage<\/strong><\/h2>\n\n\n\n

Renewing your mortgage is when you agree to a new mortgage with your current lender or a new lender. You may do this for several reasons, but getting a lower interest rate is the most common. You start a new mortgage term with the new interest rate when you renew your mortgage<\/a>.<\/p>\n\n\n\n

What to Consider Before Renewing Your Mortgage<\/strong><\/h2>\n\n\n\n
\"signing<\/figure>\n\n\n\n

When it comes time to renew your mortgage, there are a few things to remember. First and foremost, you’ll want to compare rates from different lenders to ensure you’re getting the best deal. It’s also important to consider the term of your loan and any prepayment penalties that may apply. With some research, you can be sure you’re getting the best possible deal on your mortgage renewal.<\/p>\n\n\n\n

Here are some key things to consider when renewing: <\/strong><\/p>\n\n\n\n

The interest rate<\/strong>: When you renew your mortgage, you may get a lower interest rate than your current mortgage. This could save you a lot of money in the long run. On the other hand, if you find interest rates are higher when you renew, shopping around is even more essential.<\/p>\n\n\n\n

The term: <\/strong>The term is the length of the mortgage. When you renew your mortgage, you may be able to extend the term, which will lower your monthly payments. Or on the flip side, if you’d like to pay off your mortgage at an accelerated rate, you may reduce your term to decrease the interest you pay.<\/p>\n\n\n\n

The fees:<\/strong> There may be fees associated with renewing your mortgage. Make sure you know what these are before you sign anything.<\/p>\n\n\n\n

The prepayment penalty<\/strong>: If you decide to pay off your mortgage before the end of the term, you may have to pay a prepayment penalty. Make sure you know what this is before you renew your mortgage.<\/p>\n\n\n\n

Your financial goals:<\/strong> Lastly, don’t forget to put your money first. Do you want to reduce your monthly payments? Or are you looking to shorten the length of your mortgage?<\/p>\n\n\n\n

You may want to explore a mortgage renewal with a new lender to reduce your monthly payments. Some lenders offer lower rates than your current lender, which could help you save money.<\/p>\n\n\n\n

If you’re looking to shorten the length of your mortgage, you may want to explore a mortgage renewal with your current lender. Some lenders offer special rates and terms for customers looking to renew their mortgage early. This could help you save money in the long run.<\/p>\n\n\n\n

How to Secure a Better Mortgage Rate<\/strong><\/h2>\n\n\n\n
\"Calculating<\/figure>\n\n\n\n

Let’s go through the top tips for doing a mortgage renewal right. <\/p>\n\n\n\n

Shop Around Early and Ask For a Better Rate<\/strong><\/h3>\n\n\n\n

The best way to get a good deal on your mortgage is to start shopping around early. This will give you time to compare rates and terms from different lenders. It will also provide you with time to get pre-approved for a mortgage, which will make the process of buying a home go a lot smoother.<\/p>\n\n\n\n

Negotiate with Lenders<\/strong><\/h3>\n\n\n\n

Don’t be afraid to negotiate with your current lender. For example, you may get a better rate by asking for a discount or agreeing to renew your mortgage for a longer term. If you’re unsure how to manage these negotiations, don’t hesitate to find an expert, or a mortgage broker, who will have your best interest at heart. <\/p>\n\n\n\n

Consider a Fixed-Rate Mortgage<\/strong><\/h3>\n\n\n\n

If you’re worried about interest rates rising in the future, you may want to consider a fixed-rate mortgage. This type of mortgage locks your interest rate for a set period, so you can avoid surprises.<\/p>\n\n\n\n

Related content<\/p>

How Do Mortgage Payments Work?<\/a><\/p><\/section>\n\n\n\n

Get a Mortgage Rate Hold with a Lender<\/strong><\/h3>\n\n\n\n

A mortgage rate hold allows you to lock in your low-rate mortgage rate for a specific period, usually 120 days, in Canada. This guarantees that you can retain your new lender’s fixed rate even if the prime rate increases.\u00a0<\/p>\n\n\n\n

Give Yourself Time to Switch Lenders<\/strong><\/h3>\n\n\n\n

Probably the most important of all our tips \u2014 make sure time is on your side. Too soon, and you will miss out on great interest rates. Too unprepared, and you may have a penalty to manage.<\/p>\n\n\n\n

Keep These Tips in Mind<\/strong><\/h2>\n\n\n\n
\"Young<\/figure>\n\n\n\n
  • The mortgage application process can take several weeks or even months, so start early.<\/li>
  • Your current lender may not be willing to let you go quickly, so you may have to pay a termination fee.<\/li>
  • You’ll also need to coordinate the transfer of your mortgage with your current lender and the new lender.<\/li>
  • Compare lenders’ interest rates and other terms to ensure you get the best deal.<\/li><\/ul>\n\n\n\n

    If you’re unhappy with your current mortgage lender, give yourself plenty of time to switch to a new one. Comparison shopping and getting your application in early will help make the process smoother.<\/p>\n\n\n\n

    The Bottom Line on Saving Money With Renewal<\/strong><\/h2>\n\n\n\n

    In conclusion, there are many benefits to mortgage renewal. By understanding the process, you can ensure that you get the best deal possible. By shopping around and comparing rates, you can save a considerable amount of money in interest payments over the life of your mortgage.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Don’t forget to compare lender rates when your mortgage is up for renewal<\/p>\n","protected":false},"author":113,"featured_media":21992,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"guide":[],"class_list":["post-21991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/21991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/113"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=21991"}],"version-history":[{"count":1,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/21991\/revisions"}],"predecessor-version":[{"id":21993,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/21991\/revisions\/21993"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/21992"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=21991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=21991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=21991"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=21991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}