Most people don't start thinking about their Ontario mortgage renewal until they are sent a renewal notice. Unfortunately, by then it's too late to take full advantage of the alternatives.

To make sure you’re getting the absolute best package of Ontario mortgage rate, features, options and flexibility for your renewal, you need to start thinking about it several months in advance.

As Ontario Mortgage Renewal Agents, we have seen too many people spend too much money by simply accepting their current lenders first renewal offer.

Because we can’t bear to see good, hard-working Canadians continue to be taken advantage of, here is a list of 10 things you need to know before you renew your Ontario mortgage.

Start taking action on your renewal 120 days (four months) in advance

Mark your calendar or digital organizer for four months before your renewal. On that date, start re-evaluating your needs to see what type of mortgage is likely to fit best this time.

Start researching the market for products, features, interest rates, lenders and interest rate trends. If this sounds like too much work and you’re leaning toward simply signing your renewal offer when it arrives, DON’T! Instead, take the easy route and let The House Team do all the work for you, for free.

You can ask for a lower rate

If you do nothing else, simply pick up the phone when you receive your lenders renewal notice, thank them for the interest rate they’ve offered and ask them if they can bring it down a little.

In MOST cases, they’ll say yes. Of course, you have to wonder, “If I can get a lower rate by simply asking for it, imagine how much better rate and features I could get if I had a mortgage professional playing hardball with several competing banks!”

See renewal as a time to start over

So much may have changed in your life since you first took out your mortgage. It would be foolhardy to lock yourself into exactly the same mortgage — at an unnecessarily high rate — just because your lender doesn’t want to take the time to provide a financial review and make a more current recommendation.

Don’t think this has to take up a lot of your time — as independent mortgage advisors, The House Team can perform a full review in a few minutes, whenever and wherever is most convenient for you.

Attractive new mortgages and features may be available that you’re not aware of

New mortgage products are being introduced all the time. Not only do some offer better rates, they may also offer better pre-payment options, cash backs, amortizations, accelerated payment schedules, investment opportunities and more.

The rate market may have changed dramatically

When you first took out your mortgage, you may have gone variable because rates seemed to be continually dropping. But what if the economy and Ontario interest rates have shifted in the meantime?

Maybe it’s time to consider locking in so your payments don’t start creeping up month after month. But you’ll never know if you simply sign up for more of the same.

If you can, pay down the principal

Renewal is a great time to put a lump sum down on your mortgage. There are no limits to how much you can pay. And since it goes straight toward your principal, even a modest amount can dramatically reduce your amortization and total interest costs.

Renewal is the best time to refinance

If you’re thinking about taking out equity from your home for renovations, investments, children’s education, etc., do it at renewal time. Since your mortgage term has ended, there are no early payment penalties, which can save you thousands of dollars.

Rate isn’t everything, but it’s TREMENDOUSLY important

Accepting your lenders first renewal offer is like leaving money on the table. You can do better by shopping around yourself, and you can do MUCH better by letting a mortgage professional shop for you. Shaving a point off your rate can save tens of thousands of dollars over the life of your mortgage!

Don’t be too scared off by fees to switch lenders

Your existing lender may tell you there’s a discharge fee if you move your mortgage. But don’t worry. Your new lender will likely be happy to cover this fee for you. If the new lender won’t pay the fee, talk to The House Team. The team would be happy to find you a lender who will — and who will also offer a more attractive package of rate and features!

Even if The House Team gets you a lower renewal rate, keep your payments the same

Sure, with a lower rate, you could enjoy lower payments and increased cash flow. But if you keep your monthly payments the same as they were when your rate was higher, you’ll pay off your mortgage sooner and be well on your way to financial security!

As you can see, there are lots of steps you can take to make sure you get a better mortgage, rate and features at renewal. But the easiest way to save all this money and get all these important benefits — for FREE — is to click here and talk to The House Team about your renewal well in advance.