Credit / Debts / Income / Mortgage Renewal / Qualifying / Quizzes / Rates & Terms / Refinance

Mortgage Renewal Test


Should you restructure your mortgage at renewal?

Your mortgage renewal date is your opportunity to re-work the terms of your mortgage with no penalties.  At renewal time, your previous mortgage term has now ended and you have to make some decisions about what kind of mortgage term you would like going forward. Take the test below to see if restructuring your mortgage at renewal time is a good idea;

1. Have you compared the renewal rates your current lender is offering you to what other lenders are advertising for the same term length?

A) YES               B) NO

2. Is paying off your mortgage balance a priority for you?

A) YES               B) NO

3. Are you only making minimum payments on your credit cards?

A) NO               B) YES

4. Do you have equity available in your home?

A) NO               B) YES

5. Do you think you are going to sell your home in the near future?

A) NO               B) YES 

6. Do you want to increase your investment amounts or top up your RRSPs?

A) NO               B) YES

7. Do you like dealing with your current lender?

A) YES               B) NO

Mostly A’s

If you selected mostly A’s, restructuring at renewal is likely a good idea for you to explore. Whether you’re thinking of selling your home or would like to consolidate your personal debt into your mortgage it makes sense to at least look into how restructuring your mortgage can put you into a better financial position. By taking advantage of the opportunity to restructure your mortgage at renewal time, you can lower your overall monthly payments, increase your investments, put a downpayment on a rental property, or whatever other financial goals require a large sum of cash to be achieved. If you do proceed with a mortgage restructuring you will likely have to re-qualify meaning you will have to confirm your application details with supporting documents.

Mostly B’s

If you chose mostly B’s, restructuring your mortgage is likely not a priority for you. You may have a great relationship with your current lender, or don’t want to go through the process of qualifying again, either way you are happy keeping your mortgage the same and that is a-okay. If that is your goal, it is still a good idea to do your research to ensure your current lender is giving you the most favorable terms. Even if you’re not making any changes to your mortgage amount or amortization, shopping for best rates can be the difference between your current lender offering you 3.59% for a 5-year fixed term while the broker down the block is promoting a 5-year fixed rate at 2.99% to earn new business. Don’t trust your current lender to offer it to you upfront just because you’ve never missed a mortgage payment, sometimes, you the borrower needs to do the work to find the best rate.

Keep in mind, this is for informational purposes only, I always recommend you consult your trusted mortgage professional to identify a mortgage solution customized to your individual financial situation.

If you’re looking for a trusted Mortgage Professional with Personality, contact the MortgageGirls at 866.932.8412 or email Stay in the loop by following us on Twitter @mortgagegirlca.

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