Renewal vs. Refinance
What is the difference between a mortgage renewal and a refinance?
The main difference between a mortgage renewal and a refinance is that you will be borrowing more money with a refinance. Our 911 Mortgage Brokers and Agents are familiar with the current market rates and will be able to shop the market for the lowest refinance rate for you.
Mortgage refinancing is when you use your home equity to borrow more money on top of your existing mortgage. This then creates a new mortgage with a higher balance. On the other hand, mortgage renewals are only for the same balance amount. If you want to borrow more money when renewing your mortgage, you will need to refinance your mortgage.
Mortgage renewals can only be done when your mortgage is near the end of its term, with lenders allowing early renewal periods a few months before. Mortgage refinances can be done at any time, but prepayment penalties will apply if you refinance before your mortgage is up for renewal. These prepayment penalties vary depending on the interest rate type and other factors that your mortgage broker will take into consideration when preparing your refinance options.
Our 911 Mortgage Brokers will compare all the options for you and provide the best mortgage solution. In some instances, “breaking” a mortgage can make more sense if it allows you to reach other goals, or if the penalty is manageable. We can even negotiate rolling in a penalty into your new mortgage thus allowing you to take advantage of a lower interest rate, a cash-out amount or other beneficial features that may come with your new mortgage.
Should I renew or refinance?
The decision to renew or refinance your mortgage is a crucial one at the time of renewal. If you are nearing the end of your mortgage term, it may be advantageous to obtain a new mortgage that suits your new financial situation while at the same time taking the opportunity to pick and choose the features that you need, such as a shorter or longer amortization, a different payment schedule, a different lender, and more beneficial terms such as lower prepayment fees.
Depending on the state of the market, you may also wish to change your mortgage type from fixed to variable or vice versa. Renewing or refinancing a mortgage is an important consideration for which we recommend hiring an expert.
How 911 Mortgage Brokers can help
Our 911 Mortgage Brokers are expert mortgage brokers. They are already very familiar with the existing market rates and conditions. Our 911 Mortgage Brokers can evaluate your current mortgage features and assess your financial situation to recommend a product that fits your needs, your goals and your lifestyle.
Contact us for a free mortgage consultation as early as 120 days before the maturity date of your current mortgage. We will explore your mortgage options, lock in your desired rate and complete your transition to your new mortgage, smoothly and without any hassles.
Call Us Today at 289-318-0911 or Toll Free at 1-888-377-0911 for a free confidential consultation to discuss your options or apply online.
Our Service Areas
911 Mortgage Brokers – The Mortgage Centre offers services to clients across Toronto and the GTA, Vaughan, King, Aurora, Stouffville, Newmarket, Markham, Richmond Hill, Barrie, Innisfil, Orillia, Collingwood, Oshawa, Ajax, Whitby, Mississauga, Brampton, Caledon, Burlington, Oakville, Milton, Bolton, Hamilton, St. Catherines, Niagara Falls, Windsor, Kitchener, Waterloo, London, as well as far as Muskoka cottage country, Ottawa, Simcoe, and the rest of Ontario.
