Do You Understand Your Mortgage Renewal Options?

This post is written by Trusted Partner, Keith Uthe of Enrich Mortgage Group. To become a contributing editor, please contact our Real Estate Investor Solutions Specialist, David Maxwell at david@reincanada.com.

Homeowners and real estate investors alike are facing interest rates at renewal that are going to have significant impact on their monthly payments and budget.

What all borrowers need to know is there are likely other options available beyond simply signing the renewal offer from your current lender.

One of the most important services I offer is helping borrowers understand what the options and opportunities are that are available to them.  Then you can make an informed decision on what is best for you and your situation.  

Aside from signing that renewal here are 3 possible alternatives that may be available to both homeowners and real estate investors.

1. Completing a with/transfer of the mortgage balance and remaining amortization to a different lender that is offering better rates and/or terms. (Special clauses or early payout penalty calculations could be a future roadblock)

2. Completing a switch/transfer of the collateral charge mortgage balance and increasing the amortization back to 25 or 30 years to keep payments lower. In some cases a HELOC could also be added with the transfer.

3. Completing a refinance as long as the loan-to-value is 80% or lower.  This can allow for amortization up to 30 years with A lenders or 35 years with B lenders. 

Each borrowers situation is unique and as such the options will vary due to property type, location, income and current lender mortgage type.  

In 2023, I have discovered that both homeowners and real estate investors do not know that there are other options to simply signing that renewal as their current lender does not or cannot offer them all options.  

To get clarity on your options contact Keith Uthe, Mortgage Alliance Enrich Mortgage Group, today and Book A Discovery Call. Keith is working with borrowers throughout Canada to ensure they can can make knowledgeable and informed decisions and ‘All People are Living a Life of Opportunity’.