Mortgage Pre-Approval
Getting pre-approved for a mortgage is an exciting step in your home-buying journey! It means a lender has reviewed your financial details and confirmed that you qualify for a mortgage loan, up to a specific maximum amount. You’ll also receive an estimate of your monthly payments, and in most cases, your interest rate will be locked in for 60 to 130 days.
However, it’s important to understand that a pre-approval doesn’t guarantee you’ll get the full amount. The final loan amount depends on the purchase price of your new home and the size of your down payment.
Planning for Costs Beyond the Down Payment
While you’re saving for your down payment, don’t forget to set aside extra funds for closing costs, moving expenses, and any immediate maintenance or repairs your new home might need.
How the Process Works
The pre-approval process typically starts with a pre-qualification, which gives you a rough idea of what you can afford. From there, the pre-approval provides a more detailed and accurate assessment.
Refinancing Your Mortgage
Refinancing your mortgage means replacing your current mortgage with a new one. Many homeowners choose to refinance to access their home’s equity or take advantage of lower interest rates to save on their monthly payments.
Why refinance? Here are some common reasons:
Shorten your mortgage term to pay it off faster.
Switch between a fixed and variable rate to suit your financial goals.
Tap into your home’s equity with a cash-out refinance — borrow more than you owe on your home to access extra funds.
Consolidate high-interest debt, like credit cards or car loans, into one manageable payment.
What can you do with the extra funds?
Give your home a makeover with renovations or repairs.
Cover tuition costs for yourself or a loved one.
Invest in your future by contributing to your RRSP or topping up your TFSA for tax-free growth.
Mortgage Renewals
A mortgage renewal is your chance to end your current mortgage term and start fresh with a new one. It happens when your term is coming to an end. By law, your lender must send you a mortgage renewal statement at least 21 days before your term expires.
Get Ahead of the Game
To secure the best possible rate, it’s a great idea to start working with a mortgage broker a few months before your term ends. We’ll make sure you’re fully prepared to get the most out of your renewal.
What’s in a Renewal Statement?
Your renewal statement will arrive via email or mail and includes details about your current mortgage, such as:
The remaining balance
Your current interest rate
The term length
Any applicable fees
But beware—lenders often renew mortgages automatically at less favorable rates. That’s why it’s so important to carefully review your renewal statement and explore all your options.
You’re in Control
While lenders want to keep you as a customer, they’re not legally required to renew your mortgage. That means you’re free to shop around and switch to another lender if it means getting a better deal.
If you decide to stick with your current lender, don’t just accept the rate they offer—negotiate! Your mortgage renewal is an opportunity to save money and find a term that better suits your needs.
Ready to maximize your renewal? Let’s make it happen!
