Yahoo Finance Renewing your mortgage? 6 tips homeowners should know
During your mortgage renewal period, you have the chance to reassess your financial situation, ensuring that your home loan aligns with both your current needs and future plans. This opportune moment allows you to explore different mortgage products, interest rates and terms, potentially saving you money and providing greater flexibility when it comes to your financial goals.
So, if the time has come to renew or refinance your home, it’s worth taking a closer look at your available options to find the one that works best for you. In partnership with ATB Financial, here are six expert tips to help you navigate the mortgage renewal process with increased confidence and clarity.
1. Get started ASAP
The most important tip? Don't wait until the last minute to begin the renewal process. Instead, start researching your options at least four to six months before your current mortgage term expires. Taking advantage of current interest rates earlier may save you money in the long run.
ATB offers their mortgage clients early renewals up to 120 days before maturity on standard closed mortgages with no prepayment penalty, or at any time without penalty if you have an open mortgage.
2. Review and reevaluate your financial goals, if needed
Our lives are constantly changing, and our financial goals change with them—which is why it’s wise to use this time to review and reevaluate your financial situation. Consider factors such as changes in income, expenses or family circumstances since you last renewed your mortgage, then determine whether your current mortgage still aligns with your objectives and needs. This can help you make more informed decisions if any adjustments need to be made to your terms to ensure they’re better aligned with your current financial picture and priorities.
3. Consider your future plans
Life’s many twists and turns may lead you to consider selling your current home at some point during your tenure. As renewal approaches, your intentions regarding the sale of your current property should factor into your decision-making process. Opting for an open mortgage or shorter term could be advantageous if you plan on selling in the near future, helping you minimize prepayment penalties and fees.
You may also be able to “take your mortgage with you” as you move to a new property. ATB offers clients added flexibility to port their existing mortgage to a new home while maintaining the same terms at the time of transfer, with no prepayment penalties.
4. Evaluate your options, and be sure to shop around
Same as with any important financial decision, it’s worth exploring the various mortgage products available to you and assessing how they align with your current, as well as future, needs. Look beyond interest rates, and consider additional factors such as mortgage terms, payment flexibility and prepayment options. For example, have you considered a “blended” mortgage? With ATB, you can “blend and extend” by combining your term’s contractual fixed interest rate with the current market interest rate and extending the term at the blended rate.
Not quite sure what’s best for you? Schedule a chat with an ATB mortgage specialist to gain deeper insights into the mortgage options that best suit your unique financial situation. No other bank knows Alberta quite like ATB, which has been serving Albertans for over 85 years; ATB’s trusted experts can help provide personalized advice tailored to your specific needs and help guide you through the renewal process from start to finish.
5. Make sure you understand the renewal terms
Pay attention to important details such as interest rates, prepayment penalties, renewal terms and amortization periods (the length of time it will take to pay off your mortgage in full). Ensure that you fully understand the implications of each term and how they will impact your financial obligations. Whether you’re renewing your mortgage, refinancing your home, or applying for a mortgage for the very first time, the better you understand your options, the more confident you’ll feel when it comes time to make your decision.
6. When in doubt, seek professional guidance
Whether you're a current ATB customer or considering switching providers, you don’t have to go it alone. Consulting with a professional mortgage expert can provide invaluable insights and assistance throughout the renewal process.
ATB boasts a team of knowledgeable mortgage specialists who can help you navigate the complexities of mortgage renewal and find the right solution for your needs, offering advice on everything from current interest rate trends to the various mortgage products available to you and strategies to optimize your financing. By leveraging the bank’s decades of mortgage expertise, you can make more informed decisions that better align with your financial goals—helping you secure a mortgage that suits your needs not just in the short term, but the long term as well.
