Is your Mortgage coming up for renewal? Are you feeling stressed about today’s interest rates?
Many of you are probably fearing the rate that you will be offered on renewal especially compared to what your current rate is at. The challenge is that we can’t change where current rates are sitting but we can get a bit ahead of the renewal and take time make sound decisions rather than just signing with the current Lender. Doing your due diligence and taking the time to look at options is very important in a higher interest rate market.
Here are some ideas on how to deal with your mortgage renewal in 2023/24.
Renewal time in 2023 and 2024 = higher rates
Renewing your mortgage within the next year is going to come as a shock. In the past year or so they have drastically increased from what they were before 2021/22. They have almost double compared to where they were 5 years ago when you were approved for your mortgage. If your mortgage is coming up for renewal, this means you should expect rate offers that could potentially be twice as much as your current rate. This might be quite a shock for borrowers that have fixed rates, as now the rate they are offered on renewal will be much higher than they are used to and payments are potentially quite a bit more.
Don’t automatically sign with your current Lender
Most borrowers don’t realize that there are other options than just signing with the current lender. Usually, you are sent the renewal in advance which should give some time to shop around for other options. Sometimes that can save thousands and is worth a bit of paperwork. For some, sticking with their current lender makes sense but for others switching to a new Lender can be a better. Maybe a refinance to extend the amortization and consolidate other debt could be a good option. This is the time where it might not be just about rate but maybe monthly payment affordability? As a mortgage Broker I am a professional that does this daily and I can offer you options that would be best suited for you. If you would like an unbiased opinion on your up and coming renewal please don’t hesitate to reach out.
