Broker vs. Bank / Credit / Documents / Lenders / Mortgage Renewal / Pre-Payment / Qualifying / Rates & Terms / Refinance / Rental Properties

Knowing the ropes: Renegotiating your mortgage

Whether you are refinancing or renewing your mortgage, it pays to know what to expect and to be prepared.  Without going into too much detail, as everyone’s mortgage needs are different, here is a brief outline of how you can get ready for the renegotiation process;

Determine the details

When we get a call from a borrower who is thinking of refinancing their mortgage, we ask a few preliminary questions to determine the best way to proceed and even if it makes sense to do so if they are not yet up for renewal with their existing lender. Once you have provided us with the answers to the questions below, we will complete some amortization schedules to determine if there are savings to be had or if not, we will tell you that too.

What is needed from your existing mortgage lender if you are not yet up for renewal:

– Current mortgage balance and interest rate

– Estimated value of your home

– Renewal date

– Best interest rate your current lender will give you to refinance without a payout penalty (this will be a blended rate increase)

– Best interest rate your current lender will give you to refinance with a payout penalty. And what will that penalty be

– Amount of payout penalty to break your current mortgage term and move your mortgage away from this lender.  In other words, will they reduce the payout penalty if you stay with them for the refinance?

What is needed from your existing mortgage lender if you are up for renewal:

– Copy of renewal agreement from current lender

– Estimated value of your home

Details about your financial position:

– Income details for qualifying- refer to this article for document requirements

Now that you have the pertinent details about your financial position, it is time to talk to your power team to get all the information needed in order to determine if it is beneficial to do a mortgage refinance.

Put together a power team

It pays to talk to a professional before you make a decision prior to making any major changes to large assets or liabilities such as your mortgage which is the largest debt most people will ever have!

Just like it’s pretty hard to play cats cradle by yourself, you don’t have to wade through all your options alone. Whether you need a Financial Planner, Insurance Broker or a Mortgage Broker, the professionals you choose should be someone you can trust to be open and honest about your options. They should also share your financing goals to ensure you are able to achieve them as efficiently as possible.  To pick your power team, talk to someone you trust already and ask them if they can make a referral based on their own experiences.


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