When it comes to mortgages in Canada, one of the most important decisions you can make is to choose how to renew it. Mortgage renewal is a process of renegotiating the terms of your mortgage when the current term is ending. It is important to understand the different options available to you, so that you can make an informed decision and select the best option for your situation.
The first option is to renew your mortgage with your existing lender. This is typically the most convenient option, as the lender will already have your financial information on file, which can make the process much easier. Your lender may also offer you special incentives to stay with them, such as lower interest rates or waived fees. However, it is important to compare the terms of the renewal with other lenders to ensure you are getting the best deal.
The second option is to shop around for a new lender. In this case, you will need to start from scratch, filling out a new mortgage application and going through the process of obtaining credit approval. This option can be more time consuming and costly, but it may be necessary if you can find a better deal.
The third option is to use a mortgage broker. A mortgage broker can help you compare different lenders and find the best renewal option for your situation. The broker will act as an intermediary between you and the lender, helping to negotiate the best terms for your mortgage. The broker may also be able to offer special deals or discounts, which can help to lower the cost of your mortgage.
No matter which option you choose, it is important to understand the terms of your mortgage renewal and to shop around for the best deal. Taking the time to research your options and compare lenders can save you money in the long run.