Refinance Your Mortgage, Consolidate Debt & Cut Your Bills in Half

Renewing/ Refinancing Your Mortgage

Renewing your mortgage
Just like an annual financial plan you should review your mortgage regularly. Renewal time is the ideal time to reassess your options and re-examine your overall financial situation. We're available to answer any questions you have and to help you choose the options and best lender that's right for you. When your mortgage is due for renewal sometimes the rate guarantee period can prove to be critical. Some lenders provide a 30-day period and some 60 days to give the opportunity to lock into your next term. Obviously the longer the better because if rates moved up you may have missed the boat.

At renewal, you have the option to pay off all or part of your mortgage, change the term (the interval between renewals), change the amortization period (the time required to fully pay off your mortgage), or change the frequency of payments (weekly, etc.). With this flexibility, you can adjust your regular payments to suit your circumstances, which may have changed.

No cost to switch to other banks
If your mortgage is up for renewal with a major financial institution, switching it to another lender is easy. Quite often when we compare your renewal rate to other lenders hungry for your mortgage, they will offer you a better deal. This is done at no cost to you because the new lender who wants your business will pay for the legal and appraisal fees to do the switch.

You may have a discharge fee charged by your current bank however the savings in switching will outweigh the costs if proven to be beneficial.

Give yourself plenty of time to shop before your mortgage renewal. Before your mortgage has to be renewed, you choose the day, month and year when you want to receive your reminder.

"FORM" NAME: E-MAIL: RENEWAL DATE: REMINDER DATE: PHONE #:

Should you break your mortgage for a lower rate?
Yes and no. When you break your mortgage contract to renew your mortgage at a new rate and a new term, you're faced with a prepayment charge to reimburse your financial institution for the lost interest income. As a basic rule of thumb, the prepayment charge is based on three months interest or the interest rate differential (that's the difference between you present mortgage rate for the balance of your term and the current rate you want to take out), whichever is greater.

If your mortgage is insured by the Canadian Mortgage and Housing Corporation, you pay a maximum penalty of three months interest after the third anniversary date of the interest adjustment period, or after the third anniversary date from your most recent renewal.

The amount of the prepayment charge will tell you whether or not you should renegotiate your interest rate. Generally speaking, the shorter your remaining term - ideally less than a year - the smaller the penalty, and the more attractive early renewal becomes. On the other hand, the longer the term left on your mortgage, the greater the prepayment penalties, which makes early renewal less desirable. At Mortgage for Less we can find you a lender that will actually pay some or all of your penalty to get your mortgage business let us show you how!

We can calculate it for you
Since we have information on most lenders, we can easily make the calculations to determine if you should break your mortgage to take advantage of current lower rates. We'll make your decision making easy for you.

CONTACT US TO HELP YOU ANSWER THESE AND OTHER QUESTIONS!

PHONE: 416-626-7800
E-MAIL: info@firstcmc.com