When it comes to renewing your mortgage, many homeowners make the mistake of going on autopilot. After all, it’s easy to sign the renewal letter your lender sends you and move on. But this convenience could cost you.
Your lender’s goal is to secure your repeat business with minimal effort on your part. However, what many borrowers don’t realize is that signing that letter isn’t the only option. You have the freedom to explore other lenders and better deals—especially now that the stress test is no longer a factor when switching lenders at renewal.
So when that renewal letter lands in your mailbox, ask yourself: “Can I do better?” In most cases, the answer is a resounding YES.
Here are six reasons why working with a mortgage expert—up to nine months before your renewal—can save you money and help you secure the best possible deal:
1. You Now Have More Choice
Recent changes have eliminated the stress test for borrowers switching lenders at renewal. This opens up opportunities to explore better rates and terms in the marketplace. With access to over 50 lenders and thousands of mortgage products, a mortgage expert can shop around and negotiate the best deal tailored to your needs.
2. Credit Matters More Than You Think
Your credit score plays a big role when switching lenders, and even your current lender may take it into account at renewal. If your credit could use a boost, an expert can guide you through strategies to improve it, ensuring you qualify for the best possible terms.
3. Debt Consolidation Can Save You Money
If you have enough equity in your home, renewal is a great time to consider consolidating high-interest debt into your lower-rate mortgage. This strategy can improve your cash flow and save you money in interest payments. A mortgage expert can help you determine if this approach is right for you.
4. Avoid Common Renewal Pitfalls
Changes to your financial situation—such as taking on new debt or changing jobs—can impact your ability to switch lenders. A mortgage expert will work with you to navigate these potential challenges and keep your options open.
5. Unlock Lower-Rate Mortgages
If your mortgage is uninsured, an expert can help you determine whether switching to a lower-rate insurable mortgage is possible. This move can result in significant long-term savings.
6. Free Up Cash Flow When You Need It Most
For homeowners with 20% or more equity, a 30-year amortization could be an option. This approach lowers your monthly payments, freeing up cash flow for other needs or life situations. A mortgage expert can help you weigh the pros and cons of this strategy.
Why Work with a Mortgage Expert?
Renewing your mortgage is a critical financial decision, and you don’t have to navigate it alone. With access to dozens of lenders and hundreds of mortgage options, a mortgage expert works for you—not the banks. Their goal is to help you make informed decisions, ensuring you secure the right package of rates and features that align with your financial goals.
Don’t Leave Money on the Table
Starting the process as early as nine months before your mortgage renewal gives you the time and flexibility to explore your options and maximize your savings.
If your renewal date is on the horizon, reach out to TopRankinMortgages today. Together, we’ll ensure your mortgage renewal sets you up for financial success.
Ready to get started? Contact us today for a free consultation.
