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Mortgage Renewal Facts

Many Canadians simply re-sign their mortgages when they need to be renewed. This article will provide some facts about renewing a mortgage, as well as some ways that a person can improve his or her mortgage and reduce the payments.

You Don't Have to Renew Your Mortgage With the Same Company
Many people seem to be under the impression that they have to stick with the bank or lender that provided them with their mortgage in the first place. This is inaccurate. When a mortgage needs to be renewed, clients should to look at different lenders and determine which is right for them. Customers should check for lower rates of insurance, lower monthly payments, or other options that will meet their needs.

Hire a Mortgage Broker
It is perfectly acceptable to hire a mortgage broker to help you find the best rates for a mortgage. A mortgage broker is an excellent source of information for different rates and savings. Finding a good broker could lead to saving a great deal of money in the long run.

The Lender Has to Tell You If the Mortgage is Renewed
The company or bank that originally lent you the money for your mortgage has to inform you at least 21 days before the mortgage expires. This will allow you to make other arrangements if the mortgage should be denied.

You Have to Actively Transfer Discounts
Should you decide to transfer your mortgage to another company or bank, it is important to actively make sure that your discounts are transferred as well. Although you can get discounts by adding home insurance, life insurance, or disability insurance, they will not automatically go over when the mortgage is transferred. They can still be applied but you have to make the request.

Lenders Cannot Coerce You Into Anything
If a lender should attempt to pressure a person into getting a financial package or signing any other agreements in order to get a mortgage approved that is called coercion and is considered illegal. It should be reported to the proper authorities as soon as possible.

All Items on a Renewal Contract Should Stay the Same
All points and specifications on a renewal contract for mortgages should not necessarily change. If there are any changes to be made, the owner of the mortgage needs to be informed by the lender at least 30 days before. The information needs to be in writing so that the person considering renewal has a chance to properly understand the new changes to make an informed decision.
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