Mortgage Renewal Process
Lets have a look
If your renewal date is approaching then you’ll want to understand the mortgage renewal process before you step into it. Let’s review your options and the steps involved to complete the mortgage renewal process.
Mortgage Renewal Options
Most mortgages are taken out in 5-year terms and amortized over 25 or 30 years. This means you’ll likely go through the mortgage renewal process a few times over the life of your mortgage, unless you are taking advantage of the prepayment privileges available to you.
Your options are to renew with your existing lender at a rate they offer, or move to a new lender with a more competitive rate. Your existing lender may not necessarily be offering you the best rate available as they have limited ability to negotiate a rate with you. This is where we can help. As a mortgage brokerage we can shop a range of lenders to ensure you are getting not only the best rate, but also the best mortgage.
Here’s How we help
If you are an existing Canadian Mortgage Professionals client, we like to reach out about 6 months out, to give you a little nudge to start thinking about the pending mortgage renewal. It is a good time to take stock and evaluate your financial position. We are happy to chat and create a plan to move forward.
Four months before the mortgage renewal date we’ll reach out again, as this is when we are able to hold a rate for you. If you decide to move forward here’s what will happen:
- The original application information will have to be refreshed
- We update your employment details based on your information. A job letter and pay stub will be required to move forward (Notice of assessments or T4’s may be required as well depending on your income stream)
- We obtain your permission to run a new credit bureau
- The application is then presented to the lender(s) to obtain a commitment
- We’ll then ask to meet to review and sign the commitment
- Copy of your property tax statement
- Copy of your current lender offer, or a copy of your current mortgage statement if you haven’t received a mortgage renewal offer
- Copy of property insurance
- Void cheque to setup payments with the new lender
As every situation is different, lenders may require additional paperwork. We’ll let you know as things proceed.
next up signatures
Once all conditions have been met then details are sent to a signing company, either FCT (First Canadian Title) or FNF Canada (Fidelity National Financial) at the new lenders request. These two companies facilitate the transfer of the mortgage from one lender to another (much like you lawyer did with your initial purchase) .
As the mortgage renewal date approaches, they will reach out to your current lender requesting a payout statement or discharge request. This will provide the exact mortgage amount to be transferred to the new lender. You will likely receive a call from your current lender requesting your permission to proceed. Most lenders take this as an opportunity to do their best to retain your business.
Once the amount is established then the mortgage documents are prepared and you are contacted to arrange a signing time. After documents are signed, then the transfer is scheduled to close.
Mortgage Renewal process we can help
Don’t miss out on potential savings. Give us a call, set up a time to chat about the upcoming process and how Canadian Mortgage Professionals can help with your mortgage renewal.