Q: What do I need to consider when my mortgage is up for renewal?
Instead of focusing solely on rates when you are shopping around for your mortgage renewal, the smarter thing to do is to review your mortgage needs and financial goals. After a period of time, when you have finally paid off part of your mortgage while building up your home equity, you should consider refinancing and gain access to the funds you need. It’s the perfect time to refinance in your mortgage renewal process since you are not breaking your mortgage term and thus won’t occur any penalty.
Q: What documents are required to get a mortgage? Then vs. Now
In the past, we required the following to commence a file:
Preliminary form of income validation (paystub if salaried or previous year NOA if self-employed)
Since January 1, 2018, the new government imposed mortgage rules requires us to collect more documents up front:
Salary Letter from Employer
Recent paystub (within 30 days of application)
Previous years T4
Last two years Notice of Assessments from CRA if Self Employed
Last two years T1 General filed with CRA if Self Employed
Articles of Incorporation or Business License if Self Employed
6-12 months Business Bank Statements if Self Employed to validate active business activity
2-4 actual invoices to match deposits in bank Statements
Property Tax Statement if existing homeowner
Current Mortgage Statement if existing homeowner
However, required documents vary from case to case. Please chat with us so we can do the heavy lifting for you.
Q: Why do I need to start early to renew my mortgage?
If you still owe a balance at the end of your mortgage term, you will need to renew your mortgage for another term. People may overlook the importance of starting research for their mortgage renewal early, but it is never a bad idea to have enough time to shop around for your next mortgage. Make sure you mark your current mortgage maturity date on your calendar and count back 120 days – this is usually the time your lender starts to send you special offers on renewals. Don’t rush to say yes to your lender since it may not be the best option you could get.
Your Next steps:
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