Mortgage Renewals in British Columbia
Your mortgage renewal is an opportunity to review more than just the interest rate.
Before signing your lender’s renewal offer, Doug can help you compare rates, terms, penalties, prepayment options and whether your current mortgage still fits your plans.
Do Not Automatically Sign the Renewal Offer
Your existing lender may send a renewal offer that appears simple and convenient. Signing it may be the right choice, but convenience does not necessarily mean it is the best mortgage for you.
A renewal review gives you the opportunity to compare the rate, term, payment, lender restrictions, prepayment privileges and potential penalties before committing for several more years.
When Should You Start Reviewing Your Renewal?
Several Months Before MaturityStarting early gives you time to compare options, gather documents and address any qualification concerns. |
When the Offer ArrivesDo not assume the offered rate or term is automatically the best one available from that lender or elsewhere. |
Before You Sign AnythingOnce a renewal is signed, changing the mortgage later may result in penalties, legal costs or lender restrictions. |
Your Three Main Renewal Options
Renew With Your Current LenderThis may be the simplest option and may involve less documentation, but the rate and mortgage terms still deserve a careful review. |
Switch to Another LenderAnother lender may offer a better rate, improved flexibility or mortgage terms that better suit your current plans. |
Refinance at RenewalRenewal can be an opportunity to consolidate debt, access equity, change the amortization or restructure the mortgage. |
Look Beyond the Interest Rate
Mortgage Features
✓ Prepayment privileges |
Potential Restrictions
✓ How penalties are calculated |
Fixed or Variable at Renewal?
The right choice depends on your budget, tolerance for payment or rate changes, future plans and how long you expect to keep the mortgage.
Fixed RateProvides rate and payment certainty for the term, but the penalty for breaking the mortgage may be higher, depending on the lender and contract. |
Variable RateThe interest rate can change during the term. Variable mortgages may offer flexibility, but borrowers must be comfortable with changing costs or payments. |
Has Anything Changed Since Your Last Mortgage?
Your renewal strategy should reflect what you expect to happen during the next mortgage term.
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✓ Planning to sell or move ✓ Expecting retirement or reduced income ✓ Considering renovations or major expenses ✓ Wanting to pay the mortgage down faster |
✓ Carrying higher-interest debts ✓ Experiencing changes in employment ✓ Helping children or other family members ✓ Considering separation or estate planning |
What Is Involved in Switching Lenders?
Switching lenders normally requires a new application and updated documentation. The new lender will review your income, credit, property and existing mortgage.
Legal, appraisal, discharge or transfer costs may apply. In some cases, a lender may cover part of the transfer cost, but the total savings and mortgage terms should be compared carefully.
Documents You May Need
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✓ Current mortgage statement |
✓ Property-tax information |
Common Renewal Mistakes
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Signing the first offer received The lender’s first offer may not be its best available rate or term. |
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Waiting until the last minute Limited time can reduce your ability to compare options, complete documentation and negotiate. |
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Choosing only by rate A slightly lower rate may not compensate for restrictive terms, poor portability or a costly penalty. |
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Ignoring future plans If you may sell, move, refinance or retire, the mortgage should be selected with those possibilities in mind. |
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Extending the amortization without reviewing the cost A lower payment can improve cash flow, but may increase the total interest paid and delay mortgage repayment. |
Should You Refinance at Renewal?
If you want to consolidate debt, access home equity, change the amortization or restructure your borrowing, renewal may be a good time to review refinancing.
Why Review Your Renewal With Doug?
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✓ More than 35 years of mortgage experience ✓ Independent comparison of available options ✓ Clear explanation of rates and mortgage terms |
✓ Review of penalties and prepayment privileges ✓ Advice based on your future plans ✓ Serving homeowners throughout British Columbia |
Talk to Doug Before You Sign
Send Doug your renewal offer or call to discuss it. He will help you understand the rate, terms and alternatives before you commit.
Call Doug: 604-820-4570
Mortgage Renewal Advice in Mission and Throughout British Columbia
Doug Lifford Mortgage Services helps homeowners in Mission, Abbotsford, Chilliwack, Maple Ridge and communities throughout British Columbia compare mortgage renewal rates, terms, fixed and variable options, lender transfers, prepayment privileges, penalties and refinancing alternatives.
Mortgage rates, lender policies, qualification requirements, transfer costs and product terms may change. This page provides general information only. Obtain personalized mortgage, legal, accounting and tax advice before making a decision.