Category: Blogs,Mortgage Tips & Advice

Renewal Worries: How to Navigate the Uncertainty ⏳🔒

If your mortgage renewal date is this year, and if you’re like many others, you’re worried about what rates might do. The rollercoaster of interest rates can make the idea of renewal nerve-wracking. You might think that waiting it out until the last minute is the best course of action, hoping rates might drop. But is that really the wisest choice? Let me explain.

The Waiting Game: A Risky Move 🎲

Waiting to renew could mean missing out on lower rates. In today’s unpredictable economic climate, holding off until your renewal date can lead to further uncertainty and possibly higher rates, and that can mean higher monthly payments or overall interest costs. However, we can help give you some security by protecting today’s rates and continuing to work on securing even lower rates when they come up between now and your renewal date.  

The 120-Day Lock-In 🔒

Did you know that you can lock in your rate 120 days before your renewal date? This strategy protects you from unexpected rate increases and locks you into today’s rate. As mentioned, if the rates go down between now and your renewal date, we will work to ensure you get a rate that is lower than today’s rate. Working ahead and locking in the rate at 120 days protects you from increased rates. We recently had a client connect with us about their upcoming renewal. We locked in a rate two months ago at 4.89%. Now, 60 days later, the same product’s rate is 5.39%. By acting early, this client has secured a lower rate, saving them significantly over the life of their mortgage term.

Why you should rethink the lender’s early renewal option 🤔

Lenders often send you an early renewal notice, so why shouldn’t you take that rate? 

Depending on your lender, that rate will often begin as soon as you sign the documents and not on your renewal date, in essence shortening the current mortgage term and starting a new mortgage term early. Why would you do that if most of the current mortgages coming up this year are under 3-4%? It seems like a poor idea to me.  

Peace of Mind and Savings 🏡

Helping you with your renewal isn’t just about closing a file for us; it’s about supporting you through these uncertain times. By locking in a rate early, you can potentially save money on interest and keep your payments lower. This is crucial at a time when every dollar counts. A proactive approach can make a significant difference over the next term in your mortgage.

Final Thoughts 💡

Don’t let the fear of changing rates hold you back. Let’s work ahead and secure your rate to avoid surprises. If you’re approaching your renewal date, consider reaching out to discuss your options. Let’s make sure your financial future is secure and protected, keeping your costs down and your stress levels low. 🕰️🔒

Click here to book a time to connect and review your questions.

Talk soon,

Ana

Mortgages can be complicated; we are here to help you make “cents” of it.

We focus on Mortgage Solutions, Period!

To learn more connect with Ana Cruz 905.870.0513 or email at ana@askanacruz.ca