Bank mortgages in Calgary are subjected to renewal. You will get a notice from your back at least 21 days prior to the stipulated end of your term. You can get this either through a physical document or through e-mail. In most cases, it comes with a renewal agreement. If your lender decides not to renew the term with you, you will receive a notification along with your end of term notice from the lender.
Before you receive your notice, it is important for home owners in Calgary to start mulling over the choices of renewing or transferring. At least a month before your renewal letter comes in, do your research and look around.
You might want to contact mortgage brokers and other potential lenders about their terms and conditions as you just might find one that is better than your current terms. Doing this can help you find better mortgage terms that will save you a lot of money – money that you can use to fund your child’s college education or money that can help put food on your table.
If you are currently tied to a lending firm that processes your renewal automatically, you might want to give them a call beforehand to hold the renewal process. In the mean time, use the following information to decide whether to continue transacting with them or move on to a better mortgage firm or broker.
1. There is still plenty of money left to spare from your household budget to increase your mortgage payments so you can pay your mortgage debts sooner or reduce the interest rate charged on you
It would be great if you have a budget book allotted for all your household expenses to make it easier to determine if you still have some more money to spare to add to your mortgage expenditures.
2. You have no problems switching to a payment scheme or schedule that will allow you to pay off your debts sooner
For instance, if your current mortgage terms are on a monthly basis, your terms will still allow you to switch to a faster payment schedule such as bi-weekly in order to pay off your debts sooner. If you have no problems making bi-weekly payments, stick with your current mortgage lender.
3. You are satisfied with the services and terms of your current mortgage provider
Your mortgage term with the bank or lender is ending soon, do you still wish to continue your professional relationship with them? Have you found any hidden charges or loopholes in the terms you have previously signed up with? If you are generally happy, go ahead and stick with your current mortgage lender.
1. You are unsatisfied with your current terms and conditions
You may have problems with their communication or service and you just want to be treated better.
2. You think their interest rates are too high for your current financial standing
If it’s getting harder and harder to budget your daily expenses what with your mortgage taking a huge chunk out of your monthly budget, find another lender with better terms and lower interest rates.
3. You think you have made a bad decision in choosing your current lender
If they have unscrupulous policies that you can no longer stand, transfer your mortgage.
Why You Need a Mortgage Broker to Handle the Transfer
When deciding to transfer your mortgage, you will find the process more convenient if you have a mortgage broker at your beck and call. First, mortgage brokers will help you look for better lenders or banks offering rates you can afford. Brokers have connections with lenders so they can cut to the chase and point you to lenders that are worth transacting with.
Before the end of your contract with your existing lender, you have to first get the approval of your new mortgage lender. Your broker can help waive some transfer fees that are usually included when making the switch. There are lenders who will shoulder these fees. Your broker can help you negotiate in waiving many of these expensive transfer fees.
Mortgage brokers also broaden the spectrum when it comes to mortgage lenders. There are lenders that only transact with brokers so using the services of a broker allows you more lender options.
Many people still hesitate to use the services of a broker because they think this entails more expensive costs. But most brokers charge a commission rate from the lender and not from the borrower so your transactions with the brokers are virtually cost-free. If you choose your brokers carefully and find one that has earned a good reputation in this business, they will go out of their way to find you the best mortgage deals that you can stick with for a long time.