1Your lender's renewal offer is not always its best rate. You can shop around in the months before your renewal date.
2Switching lenders at renewal usually has no penalty. Breaking a mortgage mid-term usually does.
3A refinance lets you borrow against your equity, often up to 80 percent of your home's value, to pay off higher-interest debt.
4Rolling debt into a mortgage lowers monthly payments but stretches the debt out, so a plan to pay it down matters.
Get ready
What lenders will ask you for
Your renewal letter or current mortgage statement
A recent property tax bill
Statements for any debts you want to consolidate
Your income documents (pay stub and employment letter, or Notices of Assessment)
Home insurance details
Your options
Which kind of lender fits you
Option 1
Renew with your current lender
Simplest, but negotiate: the first offer is often not the best one.
Option 2
Switch lenders at renewal
Move your balance to a lender with a better rate or terms, usually with no penalty.
Option 3
Refinance or HELOC
Borrow against your equity to consolidate debt or fund renovations.
Avoid these
Common mistakes
!Signing the renewal letter without comparing offers.
!Breaking a mortgage mid-term without checking the penalty.
!Consolidating debt, then running the credit cards back up.
!Starting too late: start looking 4 months before renewal.
Take action
Your first steps
1Find your renewal date and current rate.
2Ask your lender for your prepayment penalty, if you want to change before renewal.
3List every debt with its balance, rate and payment.
4Estimate your home's value.
5Start the intake to compare renewal, switch and refinance options.
The intake
What your application will ask
Your online application goes one topic at a time and saves every answer and document as you go, so you can stop and come back. It never runs a credit check, and a licensed mortgage professional reviews it and follows up.
For renewal & refinance borrowers
When does your mortgage renew, and what is your current rate and balance?
Have you been quoted a penalty to break your mortgage early? How much?
Which debts would you like to consolidate, with their balances and monthly payments?
Plus the basics everyone answers 13
Your full name, email, mobile number and the best time to call.
The city you live in, and whether you are a Canadian citizen, permanent resident, or other status.
Are you applying alone or with someone else? If with someone, their name and how you are related.
Your goal: buy, refinance, renew, take out equity, or consolidate debt?
The property type (house, condo, multi-unit) and the city it is in.
Will you live in it, rent it out, or both?
The purchase price or estimated value, and your target closing or renewal date.
Your down payment or available equity, and where it comes from (savings, RRSP/FHSA, a gift, sale of another property).
Your approximate yearly household income before tax.
Your monthly debt payments: car loans, credit cards, lines of credit, student loans, support payments.
Your own estimate of your credit score: excellent, good, fair, poor, or not sure.
In the last 7 years, any bankruptcy, consumer proposal, collections, or missed mortgage payments?
May the broker contact you? (A credit check is only ever run later, with your separate written consent.)
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Answers
Questions people ask
When should I start looking at my renewal?
About 4 months before your renewal date. Many lenders can hold a rate for 120 days.
Can I switch lenders at renewal?
Yes, usually without a penalty. The new lender may charge small fees or cover them.
How much equity can I take out?
A refinance can usually go up to 80 percent of your home's value, minus what you owe.
Is debt consolidation a good idea?
It can cut your monthly payments a lot, but it extends the debt. It works best with a plan to stop the debt from building again.
Does starting the intake affect my credit?
No. It is only questions. A credit check comes later, with your permission.
General information, not mortgage, legal or tax advice. Lender rules change and every application is reviewed on its own facts. Your application and documents are stored privately and go only to a licensed mortgage professional at Top Mortgages Inc; they are never sold, and no credit check is run without your separate written consent.