Renewing your residential mortgage can be a great way to save money and take advantage of lower interest rates. If you’re a Langley BC resident, there are a few things you should know about renewal loans before you start the process.
What is a renewal loan?
A renewal loan is a new mortgage loan that is used to pay off the remaining balance of your current mortgage. It is typically used when your current mortgage term is coming to an end, and you want to renew your mortgage with your existing lender or switch to a new lender.
Why should you consider a renewal loan?
There are several benefits to renewing your mortgage with a renewal loan, including:
1. Lower interest rates: When you first took out your mortgage, you may have been offered a higher interest rate due to your credit score, income, or other factors. As you make your mortgage payments and improve your credit score, you may be able to qualify for a lower interest rate when you renew your mortgage.
2. Lower monthly payments: With a lower interest rate, your monthly mortgage payments will also be lower, which can help you save money in the long run.
3. Access to equity: If you have built up equity in your home, you may be able to access it through a renewal loan. This can be useful if you need money for home renovations, debt consolidation, or other expenses.
How to renew your residential mortgage in Langley BC?
Renewing your residential mortgage in Langley BC is a relatively straightforward process. Here are the steps you should take:
1. Contact your current lender: If you want to renew your mortgage with your existing lender, you should contact them well in advance of your mortgage term’s expiration date. They will likely send you a renewal agreement with the terms and conditions of your new mortgage.
2. Compare rates and terms: Even if you want to renew your mortgage with your existing lender, it’s always a good idea to shop around and compare rates and terms with other lenders. This can help you ensure that you’re getting the best possible deal.
3. Apply for a renewal loan: Once you’ve chosen a lender, you will need to apply for a renewal loan. This typically involves submitting an application and supporting documentation, such as proof of income and employment.
4. Close the loan: If you are approved for a renewal loan, you will need to close the loan with your lender. This typically involves signing loan documents and paying any closing costs or fees.
Conclusion
Renewing your residential mortgage can be a great way to save money and take advantage of lower interest rates. If you’re a Langley BC resident, our mortgage professionals can provide expert advice and assistance to guide you through the renewal process. Contact us today to learn more.
Sources:
– “Mortgage Renewal” by the Financial Consumer Agency of Canada (https://www.canada.ca/en/financial-consumer-agency/services/mortgages/renew-mortgage.html)
– “Mortgage Renewal Process in Canada” by Loans Canada (https://loanscanada.ca/mortgage/mortgage-renewal-process-in-canada/)
