• Robert Floris CFP, AMP
    Lead Mortgage Agent
    M08004919
    905-574-9200 Ext. 215

  • Mortgage Is Maturing? Here’s What To Do…

  • Mortgage Is Maturing? Here’s What To Do…

    If your mortgage is maturing it means that the term of your contact with the lender is ending. This COULD mean that your mortgage will be paid off, but it usually means that 5 years has passed since you set it up. A few months before your mortgage is maturing, the lender will start to send you notices and offers for renewal (that is if you paid it well!) Here’s what to do when they send you your renewal documents

    1. Call Us And Stay Put

    Chances are that when your mortgage is maturing, the lender will send you a renewal rate that is not a very good one. They will test your knowledge. We wrote about this here. If you are just renewing your mortgage and not changing anything (like refinancing), then we will likely advise you to “use” us to negotiate a better rate with your existing bank. Sometimes this is a better route because it only takes a signature are you are essentially done. It’s very convenient for the borrower.

    2. Switch Banks

    If your mortgage is maturing and your existing lender is not “playing fair” or you just don’t like them for some reason (like they have given you bad service), we can help you switch banks. Other lenders are generally very happy to receive your business so they will pay for the administrative costs to switch over to them. These administrative costs include legal fees and discharge fees that your existing lender charges). The legal fees are very minimal since you are just switching and not changing anything. However, please note that some disadvantages of switching banks is that you will need to provide some updated documentation including income, credit, property tax statement and mortgage statement.

    3. Refinance

    When your mortgage is maturing it is the perfect time to refinance. Refinancing means that you are borrowing more or adding a secured line of credit (for example). Usually when people refinance at maturity, their home has increased in value over the previous 5 year period and that added equity can be used on security for a higher mortgage amount. Since it is using the additional equity, they will generally require an appraisal. The advantage of refinancing at maturity is that you have completed your contract term so there will be no penalties.

    In any case, please call us when your mortgage is maturing so that we can advise you in an honest and unbiased way. Best of all, our advice is free! 🙂

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

    If you would like to see our Google reviews or leave one yourself, you can do so here.

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