As you approach the end of your mortgage term, it is important to begin the mortgage renewal process. Typically, mortgage terms last 5 years, however you should check to make sure you know when your term is coming to an end. At the end of your term, your mortgage advisor should be in touch with you to provide you with all the information you need for your renewal.

Remember, the period in between terms is when you have the option to change lenders or, if you were with the banks, this is also a good time to consider hiring a mortgage professional to work on your file. When you choose to renew your mortgage, take the time to re-assess your mortgage strategy regarding your payment options and new financial goals.

If you don’t have a strategy yet, you can reach out to a Kardia Mortgage Advisor who will be happy to discuss how you could be optimizing your finances. Even though your mortgage provide will automatically send you a renewal form that you can send back, things have likely changed since your last renewal, so don’t miss this opportunity to check with your advisor to see if there is anything you should change. We have outlined the following 5 steps to keep you proactive when handling your upcoming mortgage renewal:

1. Set A Reminder 5 Months Before Your Mortgage Renewal Date Mark

your calendar or set an alarm in your phone at least 5 months before your renewal date. Getting started early is crucial as you can start protecting rates as much as 4 months out from your renewal date, which protects you from any rate hikes. This is also the time to speak to your mortgage advisor about your options. Shop around and explore options that may be better suited for you than your current plan, or better yet, get an advisor to look for you!

 

2. Optimize Your Finances

No doubt that since your last renewal date, things in your life have changed. Your goals have likely changed and as a result, you should consider a new mortgage strategy. Maybe you got a promotion, started or expanded your family, went through a divorce or even lost some income. Regardless of how little or how much things have changed, your mortgage renewal options can have a major impact on your life moving forward, but not to worry- the perfect option for you is out there.

 

3. Consider Your Mortgage Needs

  • Getting a good understanding on what you need from your mortgage is key when it comes to satisfying your financial goals. Keep in mind the following questions when considering what you need to be getting from your mortgage renewal process…
  • Does your financial situation allow for you to increase the value of your payments for the next full term?
  • Will you have the opportunity to pay off your mortgage in full during your next term?
  • Are you expecting to need to borrow additional funds from your lender during this next term?
  • Will you be selling your home, moving, or purchasing a new home during your next mortgage term?
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