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The truth about renewing your mortgage

In 2021, nearly half of home owners are expected to renew their mortgages.

At the same time, mortgage rates are steadily [increasing/decreasing – tailor to local market]. So the question is, do you sign on the dotted line now or shop around for new rates? 

If your mortgage is up for renewal this year, here are 5 things to consider:

1.      No two lenders are the same.

Before you make any commitments, shop around to see what other lenders have to offer. There may be better rates and terms out there for you than what your current lender is offering. A mortgage advisor can show you what other options are more suited to your needs.

2.      Your mortgage should meet your needs.

Reassess your current needs to determine if your mortgage still meets your requirements. Do you have kids going to college soon and you need to pull equity out of your home to fund their tuition? Has your salary increased and you’re able to put more money towards your mortgage payments? If your personal finances have changed over time, it’s wise to research what other mortgage plans are out there that may be better suited to your needs.

3.      There is more to a mortgage than just the rate.

Yes, the rate is important. But there are also terms in the contract that you should consider before making any moves. If you’re not familiar with the conditions, talk to me to go over these with you to ensure you’re making the right decision.

4.      Negotiation is key.

The rate being offered by your lender is only a starting point for negotiations. A Mortgage Broker can show you all the discounted rates on the market so you have more options and more negotiating power. If they are not willing to negotiate, you will be armed with all the information you need to choose a better mortgage plan with another lender.

5.      Breaking out of your mortgage may come with a penalty. 

To determine if it’s worth ending your current agreement to get a better rate on a new one, it’s best to talk to an advisor who’s got some nifty math skills.  A professional can calculate any associated fees with breaking out of a contract early and compare the overall cost savings of taking on a new rate.

I’ve helped many people get lower rates on their home loan to meet their financial goals.

Allow me to walk you through the mortgage process step-by-step and find you the best rates and terms for you.


Jeff Broome

PS – To find out how to get the BEST rate on your mortgage, be sure to look out for my next email. It could save you tons of money in the long run!

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