Rodgers
Things to know before your mortgage renewal
If your mortgage term ends in the next six months, now is a good time to start looking at it, before the holidays and winter get busy. Plenty of families here in the Shuswap and North Okanagan are in the same spot this year. Here are a few things worth knowing, plus some notes for anyone who is self-employed or works in the trades.
Your renewal letter is an offer, not a requirement.
You can accept it, ask questions, or compare it with other options before you sign anything.
You can usually start looking 4 to 6 months ahead.
Many lenders can hold a rate for a set period while you decide, so starting early gives you time without pressure.
Switching lenders may be simpler than you think.
If you move to a new lender at renewal without changing your loan amount or amortization, you generally no longer have to re-qualify under the stress test.
Renewal is a good time to look at the bigger picture.
Think about your payment, your amortization, prepayment options, or whether a spring project or renovation fits your budget.
Self-employed? Keep two years of paperwork handy.
Lenders usually look at your last two years of income, so have your T1 Generals and Notices of Assessment ready. Writing off expenses lowers your taxes, but it also lowers the income a lender sees.
Trades and union workers have a few extra documents.
If you're paid hourly or through a union, expect to be asked for recent pay stubs, a job letter and sometimes proof of your ticket. As a Journeyman Plumber & Gas Fitter myself, I know how income can swing with the seasons and the work.
A little preparation makes it quicker.
Having your latest mortgage statement, recent pay stubs and your property tax notice on hand makes the conversation easier. Keeping business and personal banking separate helps too.
Whether you're in Salmon Arm, Enderby, Blind Bay, Sorrento, Armstrong, Vernon or anywhere nearby, I'm happy to take a second look at your renewal letter and walk through your options in plain language. No pressure, just a friendly chat.
Brock Rodgers, Mortgage Broker, BRX Mortgage