It’s time to renew your mortgage. Your mortgage term, usually five years, is up and it’s time to renew it. This is an important financial decision regardless of whether you are a first-time homeowner or have gone through the mortgage renewal process before.
This article will outline some tips to keep in mind, helping you to make an informed decision about your home loan.
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Mortgage renewal tips for homeowners to remember
Start your research early
As your mortgage term approaches its end, begin exploring your options early and don’t rush. Start contacting lenders months in advance to collect information about interest rates and terms. Take your time comparing different lenders and ask all the questions you need to.
Work with a mortgage broker
A mortgage broker can help you feel more confident about your decision and assess multiple lenders they’ve worked with. They can help come up with custom solutions for your specific financial situation and ensure you get the best deal possible.
Assess your finances
This is the time where you should once again review your income, expenses, and credit score. Think of any big expenses that may be coming up soon and if there will be any income interruptions.
Understand your mortgage contract
Review your current contract and make sure you review all the details of your mortgage renewal. Find out if there are any penalties for early repayment, and any additional fees associated with the renewal process.