As a first-time homebuyer, we understand the importance of flexibility. Our Mobile Mortgage Specialists bring the branch to you, accommodating your schedule and providing personalized service, ensuring you can easily navigate the journey to your first home without any unnecessary stress.
Mortgages
Refinance vs. Renew
Refinancing your mortgage and renewing your mortgage may sound similar, but they actually mean different things. Simply put, refinancing means you’re replacing your existing mortgage with a new one that has different terms and conditions. Renewing, on the other hand, means your mortgage term is coming due and you need to negotiate a new term and interest rate for your existing mortgage.
Refinancing
Refinancing your mortgage allows you to replace your current mortgage with a new one. This can include increasing the funds and choosing different terms and conditions. While you can technically refinance your mortgage at any time, additional expenses such as prepayment penalties and closing costs may apply. Before refinancing, talk to a Financial advisor or Mobile Mortgage Specialist to assess your financial situation and see if this is the best option for you.
Why would you refinance your mortgage?
Lower interest rates: if the interest rates drop significantly, getting a new mortgage with a lower interest rate could save you money over time.
Access to cash: you can use your home’s equity for major purchases, home improvements, or to consolidate debt.
Switch to a fixed-rate mortgage: if you have a variable rate, you can switch to a fixed rate mortgage if you prefer a stable monthly payment.
Things to know
✔ Refinancing could involve additional costs such as appraisal fees, application fees, and legal expenses.
✔ This option could extend your mortgage commitment.
Renewing
Renewing your mortgage involves renegotiating the terms of your existing mortgage once your current term expires. Mortgage terms typically last one to five years, and don’t automatically renew. That’s why we recommend starting the renewal process at least three months before your current mortgage term expires. To start the renewal process, simply contact one of our Mobile Mortgage Specialists or Financial Advisors.
What’s the difference between a mortgage term and amortization?
Your mortgage term is a contract with your financial institution, typically one to five years, and sets your interest rate, payments, and payment schedule during the term. Amortization is the total time it takes to pay off your entire mortgage, typically 25 to 30 years.
Why are there mortgage terms?
Life is continually changing and the same goes for your financial situation. Mortgage terms give you the flexibility to adapt to these changes as your life evolves. At renewal, you can reassess your financial situation and adjust your mortgage needs as required.
Should I refinance or renew?
The choice of refinancing or renewing depends on your individual circumstances.
If you’re looking to replace your existing mortgage with new terms and access your home equity, refinancing may be a good option. On the other hand, if you want to simply negotiate a new term and interest rate for your existing mortgage, renewal may be the best route to go. It’s best to speak with a Mobile Mortgage Specialist or Financial advisor to figure out what option is right for you.
Meet our Mobile Mortgage Specialists
Tools & Resources
Calculator
See how consolidating your debt using a lower interest rate can reduce interest costs.
Calculator
One powerful solution for managing multiple loans and debts can be a daunting task.
Have questions? That’s what we’re here for!
Give us a call
Have questions about which mortgage option is most suitable for you?
Connect with us
Ready to start your homeownership journey? Fill out this form and one of our Mobile Mortgage Specialists or Financial advisors will be in touch shortly.