Let’s talk renewals
Let’s talk renewals
Have questions about your mortgage renewal? We've got the answers you need here at Silverman Mortgage Group.
While renewing your mortgage is usually a simple process, it also gives you the opportunity to negotiate a lower interest rate, better terms or to consolidate your debts. Here's the answers to the most frequently-asked questions B.C. homeowners have about mortgage renewal:
Mortgage Renewal Guide
Jordan de Brouwer
"I had a great experience with them. I was a first time home buyer and didn't know much about the mortgage application experience. They made the whole process very easy and stress free and explained each step in detail. I would recommend them to anyone looking for a mortgage, especially first time home buyers."
Leah Allen
"We purchased a second property and Silverman Mortgage Group made the process so easy and quick. I especially liked the personalized video presentation which made it possible for us to clearly understand the process. At a very busy time in our lives almost everything was completed in the comfort of our home."
Reid Arkinstall
"My wife and I had a great experience working with the Silverman Mortgage Group. It took us a while to find the right home but Zach and his team worked with us throughout the entire process, ensuring we always had the most up-to-date mortgage information. We look forward to working with SMG in the future."
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It's a common held belief that if you've made your mortgage payments on time throughout the entirety of your mortgage term, that your lender is somehow obligated to renew your mortgage. This is simply not the case. The truth is, a lender is never under any obligation to renew your mortgage. The initial mortgage contract was drawn up for a defined time, when that term comes to an end, the lender has every right to call the loan.
Buying a home is most likely the biggest purchase you will ever have to make. This expense means that your monthly payments towards your Surrey mortgage are probably your most costly bill. To help make your payments more manageable, renewing your mortgage could make that happen. As your mortgage broker in Surrey , we have come up with tips for renewing your mortgage. Shop Early Looking for renewal rates right when your mortgage is up is too late to shop the market. Go around to different lenders between 4 to 6 months before your renewal period. This is what lenders claim to be the earliest they will guarantee cheaper rates. Shopping early also gives you time to compare different prices with different lenders. Shop Around When looking for a mortgage renewal in Surrey, it is important to not settle with the first lender you speak to. Shop around to compare the different offers available. This will give you more leverage to negotiate better deals in a competitive market. Never Settle Never settle for the first offer given to you. Whether you are looking to refinance or get a second mortgage, always make sure you ask for a lower price than what the lender is offering. Financial institutions will work with you to come up with a more reasonable price, but they will not mention a cheaper option if you do not bring it up. You’ll never know if they’ll drop the price unless you ask! Negotiate Deals Most buyers tend to only focus on the interest rate of the loan they are acquiring, however, there are other factors involved that can ensure cheaper payments. This includes the life term of your loan, also known as the amortization period. The type of loan you have, whether it is a fixed rate mortgage or an adjustable rate mortgage, can also determine lower payments. Negotiate better deals with these factors in mind, and try not to only focus on the interest rate. Use a Broker If you do not feel comfortable going around to different lenders and comparing prices, use a broker. A mortgage broker will do all the work for you and will consult with other lenders on your behalf so you get the best deals out there. As your local Surrey mortgage broker , our team will always put you first. Contact us for more tips on how to renew your mortgage, or to get started on your application today. The Silverman Mortgage Group can be reached at 604-532-3824 .
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It’s a commonly held belief that if you’ve made your mortgage payments on time throughout the entirety of your mortgage term, that the lender is somehow obligated to renew your mortgage. The truth is, a lender is never under any obligation to renew your mortgage. When you sign a mortgage contract, the lender draws it up for a defined time, so when that term comes to an end, the lender has every right to call the loan. Now, granted, most lenders are happy to renew your mortgage, but several factors could come into play to prevent this from happening, including the following: You’ve missed mortgage payments over the term. The lender becomes aware that you’ve recently claimed bankruptcy. The lender becomes aware that you’re going through a separation or divorce. The lender becomes aware that you lost your job. Someone on the initial mortgage contract has passed away. The lender no longer likes the economic climate and/or geographic location of your property. The lender is no longer licensed to lend money in Canada. Again, while most lenders are happy to renew your mortgage at the end of the term, you need to understand that they are not under any obligation to do so. So how do you protect yourself? Well, the first plan of action is to get out in front of things. At least 120 days before your mortgage term expires, you should be speaking with an independent mortgage professional to discuss all of your options. By giving yourself this lead time and seeking professional advice, you put yourself in the best position to proactively look at all your options and decide what’s best for you. When assessing your options at the time of renewal, even if the lender offers you a mortgage renewal, staying with your current lender is just one of the options you have. Just because your current lender was the best option when you got your mortgage doesn’t mean they are still the best option this time around. The goal is to assess all your options and choose the one that lowers your overall cost of borrowing. It’s never a good idea to sign a mortgage renewal without looking at all your options. Also, dealing with an independent mortgage professional instead of directly with the lender ensures you have someone working for you, on your team, instead of seeking guidance from someone with the lender’s best interest in mind. So if you have a mortgage that’s up for renewal, whether you’re being offered a renewal or not, the best plan of action is to protect yourself by working with an independent mortgage professional. Please connect anytime; it would be a pleasure to work with you!
When looking to qualify for a mortgage, typically, a lender will want to review four areas of your mortgage application: income, credit, downpayment/equity and the property itself. Assuming you have a great job, excellent credit, and sufficient money in the bank to qualify for a mortgage, if the property you’re looking to purchase isn’t in good condition, if you don't have a plan, you might get some pushback from the lender. The property matters to the lender because they hold it as collateral if you default on your mortgage. As such, you can expect that a lender will make every effort to ensure that any property they finance is in good repair. Because in the rare case that you happen to default on your mortgage, they want to know that if they have to repossess, they can sell the property quickly and recoup their money. So when assessing the property as part of any mortgage transaction, an appraisal is always required to establish value. If your mortgage requires default mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty, they’ll likely use an automated system to appraise the property where the assessment happens online. A physical appraisal is required for conventional mortgage applications, which means an appraiser will assess the property on-site. So why is this important to know? Well, because even if you have a great job, excellent credit, and money in the bank, you shouldn’t assume that you’ll be guaranteed mortgage financing. A preapproval can only take you so far. Once the mortgage process has started, the lender will always assess the property you’re looking to purchase. Understanding this ahead of time prevents misunderstandings and will bring clarity to the mortgage process. Practically applied, if you’re attempting to buy a property in a hot housing market and you go in with an offer without a condition of financing, once the appraisal is complete, if the lender isn’t satisfied with the state or value of the property, you could lose your deposit. Now, what happens if you’d like to purchase a property that isn’t in the best condition? Being proactive includes knowing that there is a purchase plus improvements program that can allow you to buy a property and include some of the cost of the renovations in the mortgage. It’s not as simple as just increasing the mortgage amount and then getting the work done, there’s a process to follow, but it’s very doable. So if you have any questions about financing your next property or potentially using a purchase plus improvements to buy a property that needs a little work, please connect anytime. It would be a pleasure to walk you through the process.