When renewing your mortgage your current lending institution will not necessarily offer you the best rate. Too many people don’t take advantage of their position at this critical time of home ownership.

This is the time when your equity grows substantially from decreasing your principal load balance combined with the appreciation of your home. Over 70% of mortgage holders simply sign their current lenders renewal form and the result is a higher rate and a product which no longer fits their financial situation and goals.

Refinancing

Refinancing is when you take your existing home mortgage, break it, and replace it with another mortgage with different terms and conditions. There are several times when you may need or want to refinance. In some cases, interest rates change and you may want to change your terms to take advantage of this because your long-term costs will go down. At other times, there is a risk that Canadian interest rates will change in the future, and you may want get a longer (or shorter) term than you have in order to prepare for the change. In some cases, there are life events that require that you to refinance (equity take out) your home mortgage in order to have the capital on hand or you need to repair your credit