Interest rates are still going up and they are moving quite quickly. If your mortgage is coming up for renewal in the next few months, you have a few options:
Let’s say you were to choose option 1 and interest rates are at 3.99% for a 5 year fixed in a few months when your mortgage renews. If you could have locked in at 3.59%, you would have saved roughly $50 a month in payments and $4600 in interest over the 5 year span!*
*20 year amortization
1. Do nothing and wait to see what interest rates are at when your renewal date arrives.
2. Contact your current lender to see if they offer “early renewal” options. Keep in mind that if you choose to renew early and rates go down at all, you will only get the rate that you have locked into. They may also offer you a “blended” rate which could be higher than you could get elsewhere.
3. Contact your Mortgage Broker to get an approval with a 120 day rate hold. If rates go down, you will get the lower rate but if they go up, then you are protected. This way you also avoid paying any payout penalties.
The only cost to switch your mortgage in BC is a mandatory $75 fee to remove the old mortgage from the land title and register the new one. Most lenders will require the standard employment confirmation documents however there are some lenders who don’t. A basic application will only take minutes of your time and could save you thousands.
Let’s say you were to choose option 1 and interest rates are at 3.99% for a 5 year fixed in a few months when your mortgage renews. If you could have locked in at 3.59%, you would have saved roughly $50 a month in payments and $4600 in interest over the 5 year span!*
It is worth it to explore all of your renewal options instead of simply taking what your current lender is offering you. Mortgage Brokers work for you, not the bank and we will make sure that the mortgage rates and terms and the best available for you.
Please contact me with any mortgage questions today.
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