Mortage Renewal
What is a Mortgage Renewal?
A mortgage renewal occurs when your current mortgage term comes to an end, and you need to either renew the loan with your existing lender or explore other options.
This is a crucial opportunity to reassess your financial situation and secure better terms, such as a lower interest rate, improved payment schedule, or even access to additional funds.
By shopping around during the renewal process, you can potentially save thousands in interest and ensure your mortgage aligns with your current goals. It’s an ideal time to renegotiate your mortgage and take control of your financial future.
Fill out the free consultation form below and get started with the mortgage renewal process today!
What Happens if I am Denied a Mortgage Renewal?
Current Lender
When it’s time to renew, your current lender will need to review your financial situation, assess additional debt you’ve taken on since you originally qualified, and analyze your credit score. You do not need to re-qualify with debt ratios and stress tests.
It’s possible to still be denied by the current lender if you’ve taken on too much debt recently or have drastically decreased your credit rating.
New Lender
Applying for a mortgage renewal with a new lender can be more challenging as you will have to re-qualify again. This means providing proof of income, credit checks, passing debt ratio checks, and passing an interest rate stress test.
However, approaching a new lender is potentially a worthwhile endeavor as they are more motivated to give you a lower interest rate. After all, they want your business!
Possible Outcomes
If you are denied by your current lender and/or are also denied by other lenders, do not worry, there are alternatives!
Some options that can be explored are B lenders, private lenders, and worst case scenario is selling your home.
Talk to us and we will work with you to find the best solution if your mortgage renewal is denied.
Things to Consider
Start Early - Many lenders will allow you to start the mortgage renewal process up to 120 days prior to the renewal date.
Consider Your Circumstances - You are in a different place in life than you were in when you first got your mortgage or when you last renewed. Do you have more or less debt? Are you interested in investing? Has your credit score increased or decreased?
Mortgage Refinancing - If your needs and goals have changed, a mortgage refinance might be the solution. This allows you to change the size of your mortgage in order to fit your needs and goals. Perhaps some extra cash for a basement renovation or maybe some money for investing.
Variety of Available Options - Having worked with 58 different lenders in the past calendar year, we have access to many products and solutions that might fit your unique life situation.
