OUR LENDING SOLUTIONS
RENEW
First Time Home Buyer
Let us help you get a better renewal.
Incredibly many Canadians renew their mortgage with the same lender because they believe it’s too time consuming to shop around – or think their existing bank’s offer is the best deal available.
This isn’t necessarily true. Unfortunately, many of these same people simply accept that lender’s posted rate or slightly better. At The Mortgage Centre, we’ll shop some of Canada’s leading lenders to compete for your renewal so you can rest assured that we are working hard to help get you a competitive rate matched to the features and benefits suited to your unique needs.
EARLY RENEWAL
Because mortgage rates may fluctuate often, it’s beneficial to revisit your current mortgage product, regardless of how long you’ve had it.
An early renewal involves renegotiating the mortgage term and interest rate before the maturity date.
Some mortgage products allow the borrower to renew their mortgage early at any time during the term.
A prepayment charge may apply if the borrower:
- Has a closed-term mortgage
- Renews their mortgage before the end of term
Before a client does an early renewal
The client should contact their lender to get details of any prepayment charge or other fees that could be charged for renewing early, and to find out if there are options to capitalize the prepayment charge or if there are any restrictions on what products the client may early renew into.
A Mortgage Centre specialist can shop the market for you and help determine whether, you’ll save money by breaking your current mortgage and renewing early. We’re happy to discuss the possibilities with you.
Pay Your Mortgage Down Faster
A mortgage is a big commitment. Most mortgages are paid over 25 years but we have some tips to help you pay yours off faster. Reducing the number of years you make mortgage payments can add up to big savings.
There are several ways to “pay down” your mortgage and get out of debt faster.
- You can increase your payment amount when you arrange your mortgage, or (if allowed by your mortgage agreement) at any time during the term. This allows you to pay down your principal faster.
- If allowed by your mortgage agreement, you can make payments more frequently which saves you money in interest charges over the long run as it allows you to pay down your principal faster.
- You use any pre-payment privilege allowed by your mortgage agreement to make a lump sum payment. A lump-sum payment is applied directly to your outstanding principal if there is no outstanding interest owing. This saves you money over the course of your mortgage.
- You can pay as much as possible at renewal. All Mortgages become open at renewal. This means you can pay as much as you want on your mortgage before you enter into an agreement to renew your mortgage after your current mortgage agreement expires.
PORTABILITY TO NEW PROPERTY
If a mortgage is portable, certain terms of the mortgage (usually at least the interest rate and the remaining term) may be transferred to the borrower’s new property if the borrower sells the original mortgaged property.
The new property will have to meet the lender’s guidelines, and usually the lender will also require that the borrower reapply or requalify for the mortgage financing. The original mortgage will be discharged from title when the original property is sold, and a new mortgage will be registered on the borrower’s new property when it’s purchased.
Types of ports
- When the amount of the mortgage on the new property is the same as the balance of the mortgage outstanding on the original property, this is referred to as a straight port.
- When the amount of the mortgage on the new property is higher than the balance of the mortgage outstanding on the original property, this is referred to as a port and increase.
- When the amount of the mortgage on the new property is lower than the balance of the mortgage outstanding on the original property, this is referred to as a port and decrease.
*May not be offered through all lenders. Details will vary between lenders.
Talk to us
Have any questions? We are always open to talk about your perculiar need, new projects, creative opportunities and how we can help you.