Mortgage renewal is your opportunity to renegotiate the terms of your mortgage at the end of your current term. You may have to renew several times throughout the course of your loan until you pay off your mortgage. This is an important time to reassess your mortgage to make sure it aligns with your financial goals. Edison is the ideal partner to help seek out and decide on the best option for you among hundreds of available options.
How Does Your Mortgage Renewal Work?
Lenders will typically begin the renewal process up to 6 months before the end of term but in any event they must provide you with a renewal statement, usually at least 21 days prior to the expiration of your current term.
While you have the option of renewing with your current lender, letting a broker shop around for loans that are a better fit for your current financial situation may be the most beneficial.
What To Consider During Your Mortgage Renewal
If you’re coming up for a mortgage renewal, there are several factors you should consider before moving forward with any option.
- When do you plan to pay off your loan? If you plan to pay it off sooner, you may want to go with an open mortgage to avoid prepayment penalties. Even with a higher interest rate, you can pay less overall if you choose to pay things off more quickly. If you don’t plan to prepay and want to stick with a lower payment, a closed mortgage could work better for you.
- Do you have plans to access equity in your home? If you think you might want to access your home equity during your next term, it might be a good time to consider a home equity line of credit (HELOC) with your mortgage.
- What’s your financial situation like? If your financial situation has improved or changed since your last mortgage, it’s worth shopping around at different lenders to get the best option. Edison knows the market very well and can likely find you a lender that’s a better fit, get you a better rate or qualify you for more.