Canada’s mortgage environment has changed a lot in the last decade. It will, no doubt continue to change. At Axiom Mortgage Solutions we understand the Canadian mortgage market and stay on top of the ongoing changes to government guidelines and policies.
Our commitment to continued education means we have the expertise to guide you through the vast array of specialized mortgage products.
It is always wise to get pre-approved for a mortgage before you start looking to purchase a home. A pre-qualification will give you the peace of mind in knowing that you can qualify and more importantly the amount you qualify for. After all, there is no point looking at houses out of your price range or getting your heart set on a property that you can’t afford. Another key advantage to getting pre-approved is the rate hold.
A rate hold allows you to secure an interest rate at today's current rates and keep this rate for up to 120 days before buying. If interest rates drop during the time you are shopping for a home you will automatically qualify at the new lower rates. If, however, rates go up then you will be safe with the rate at which you were pre-qualified.
When the term on your mortgage comes to its end, it’s time to renew your mortgage. This is a time to re-negotiate your interest rate based on current market conditions. The bank or financial institution you are currently with will likely offer you a renewal via a Renewal Offer. DON’T JUST SIGN YOUR RENEWAL OFFER! It is estimated that over 65% of Canadians simply re-sign their mortgage with the same lender at renewal time without a second thought. The fact of the matter is that each renewal should be given the same consideration and attention you gave to your first mortgage signing. Why? The rate and terms offered are rarely questioned as most people choose to avoid the “hassle of renegotiating”.
Lenders are relying on this behaviour; therefore do not typically offer the lowest rate or best terms available. It’s a savings - to them. Not you. A mortgage is (for most) the largest single expense to be incurred. Simply signing back your renewal offer is a mistake that could cost you thousands of dollars. Why take on additional expenses when you don’t have to? Contact us. We are happy to provide a mortgage review and honest advice on how to proceed into your next mortgage term. Remember, you do not have to renew with the same lender and should always consult with your mortgage broker prior to accepting any offer. In doing this, you will ensure yourself the most competitive rate and terms at renewal time.
It’s possible to renew your mortgage early. You may opt to renew early if the current interest rates are much lower than your existing interest rate. There can be drawbacks to renewing your mortgage early such as payout fees; but these fees are often far less than the money you will save at the new lower interest rate. If you‘re not sure if it makes sense to renew early, contact us and we'll run the numbers for you!
It’s always wise to get pre-approved; including your mortgage renewal. Four months before your renewal date is an optimal time to discuss options with your mortgage broker. This will allow you to hold a rate (see What’s a Rate Hold & Why Do I Want One?) and ensure you are in both the right mortgage product and the most competitive rate. If you arranged your mortgage with us, we will be sure to contact you four months in advance to get things started. If you’re ready to renew - we are here to help!