If the borrower still has an outstanding balance on their Mortgage at the end of their Mortgage term, he/she will have to Renew their Mortgage term for another term.
If the borrower’s Mortgage contract is with a Federally regulated financial institution, the lender must provide the borrower with a Renewal Statement at least 21 days prior to the end date of the existing term.
Most lenders will also allow the borrower to Renew with them anytime in the final 120 days of the current Mortgage term, without having to pay a penalty for breaking the term early. This is known as an early Mortgage Renewal.
The Renewal Statement must contain the same type of information that is in the borrower’s current Mortgage contract, such as:
- Balance or principal remaining at the Renewal date
- Interest Rate
- Payment Frequency
- Term
- Any charges or Fees that may apply
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CAN I RENEW MY MORTGAGE WITH SOME OTHER LENDER?
Yes, the borrower can move his/her Mortgage to another lender if it offers better terms and conditions. Borrowers should start shopping around 3-4 months before the end date of their Mortgage term (Maturity Date). However, switching lenders can involve some costs like Set-up Fees, a Transfer or Assignment Fee, a Property Appraisal Fee and any other Administration Fees.
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To get the best Mortgage rate at the time of Renewal, the best option available to the borrower is to generally switch lenders. Once the borrower is within 120 days of their Mortgage Renewal/Maturity date, they should approach their Mortgage Broker who will help the borrower by shopping their file around to other lenders in order to obtain a lower interest rate for the borrower. The Mortgage Broker can also negotiate with the borrowers current lender in order to help negotiate a lower interest rate on their behalf.
As soon as the borrower decides upon the new lender, the required paperwork should be completed/signed accordingly, so that the Mortgage can be switched over on the Renewal date, therefore, the borrower would not encounter any fees or penalties as they would be honouring the entire term of their Mortgage loan.
Generally speaking, a borrower should never switch lenders before their current Mortgage term is up, otherwise, an early repayment penalty will have to be paid to their current lender. However, if the borrower has been granted a fully Open status for their specific type of Mortgage loan, they shouldn’t encounter any type of penalties in regards to the repayment of their Mortgage loan.
I had a very pleasant experience working with Shawn Sef at Equity Mainly Matters Loans. We contacted Shawn looking for help in order to pay off our high interest credit card debts. Shawn made the process very easy for us by explaining the Mortgage loan details for the Debt Consolidation Mortgage Solution which he recommended for us. Shawn was actively present every step of the way and was very knowledgeable. I will definitely recommend Shawn to my peers due to his knowledge, professionalism and expertise.
Shawn is extremely passionate about his job. Shawn always demonstrates a positive and professional attitude. His easy going and friendly personality always makes the experience of working with him fun and stress free. Shawn made the entire Mortgage loan process very simple for me to which I’m thankful for. Shawn is very proactive and updates me on a regular basis in regards to my file.
Me and my husband had never worked with a Mortgage Broker before. I needed to consolidate all of my debts. I was paying high monthly interest fees to my creditors and my bank informed me that I couldn’t get approved with them because of my low credit score. Shawn did an excellent job by helping me consolidate and pay off all of my various high interest debts. I’m now debt free. My credit score has improved and I don’t owe creditors any monthly high interest payments. We went from paying $1,650 month towards our credit card debts and loans, to now paying only $520 month which helped us build up a good savings. Shawn rescued us from our creditors and helped us save an extensive amount of money for our families future.
As a first time home buyer, we required a Mortgage broker who was willing to be very patient with us and to explain every detail of the Mortgage loan process and provide us with as much information as possible. Shawn informed us of the exact required down payment amount (based on the types of lenders that we qualified for), fees, closing costs, Land Transfer tax etc. Shawn was very good in providing us with accurate rates, figures and calculations which we realized we could afford the monthly Mortgage payments and make the Home Purchase work. One other important factor was that Shawn kept on top of our file by updating the progress every step of the way which was very important to us. Shawn is very proactive which we appreciated!
Shawn helped our family obtain a low rate 2nd Mortgage from a Private Lender. Banks turned us down as we failed to meet their requirements for the stress test, income and credit criteria. However, Shawn was able to find various Private Lenders/Investors that were interested in making us an offer and we ended up taking a great offer for a 2nd Mortgage which made the most sense for us. We will definitely refer our family and friends to Shawn in the near future. I can’t say how much I appreciate all the time and effort Shawn put into our file.
Shawn demonstrates excellent customer service skills. He’s always very quick to respond to my emails and calls. Shawn helped me get approved twice in the past year alone and I hope to work with him again in the near future. Shawn was very friendly, attentive and dedicated his time and effort by providing me with solid knowledge, expertise and advice which in return helped the process of purchasing my first home very easy and stress free. Shawn even followed up on my behalf with my lawyer in order to finalize all the details. I would highly recommend his services.
From the first time I spoke with Shawn Sef, I felt comfortable and at ease which was due to his calm and patient personality and attitude. He was also very understanding and caring to our current situation and needs by providing the best course of action for us to take which made the most sense for our family. Shawn is very knowledgeable within the mortgage field and delivered exactly what he said he would. He even provided us with accurate closing/funding dates from day one. I would definitely recommend Shawn Sef to any borrower looking for a good
Mortgage broker.
Shawn had helped my wife and I obtain a 2nd Mortgage from a Private Lender last year. We used the majority of the Mortgage loan proceeds to help renovate/upgrade our home. Once the refurbishments had concluded, we ordered a new appraisal and noticed that our house value had increased substantially. The following year, Shawn helped us refinance both our Institutional and Private Mortgages into a new low rate, 1st Mortgage with an A Lender (Bank) which is going to help us save an extensive amount of money in monthly payments moving forward. I’m very thankful for Shawn’s knowledge, skills and expertise within the mortgage industry which ended up helping us save thousands of dollars.