Understanding your mortgage refinancing options at the time of mortgage renewal is not only going to be important in making the right decision going forward, but also for getting a very good market interest rate for years to come.
Most people pay their mortgage on time and have no issues with their mortgage lender as for the most part out of sight is out of mind.
So when a mortgage term comes up for renewal, most borrowers want to get the process completed and done with so that they can spend their time on other issues confronting them.
Because mortgage lenders also know that most borrowers want as little hassle with their mortgage renewal as possible, the process is streamlined for simplicity and speed.
But the process can also be stacked in the lenders favor in terms of their future profitability and your future cost of borrowing.
Let me explain.
Depending on which mortgage renewal statistics you want to believe, around 80% of mortgage holders will remain with their current mortgage lender.
Most of the larger mortgage lenders will also provide mortgage renewal options at their posted rates.
Typically, these mortgage providers are prepared to offer a lower rate to retain your business, but opt to provide the posted rate to basically see if you will blindly accept what is being offered.
In most cases, it is a quick sign back and the mortgage continues under the newly inked interest term.
The better approach from the borrower side would be to consider his or her mortgage refinancing options in order to have a market comparison available to them.
If their existing lender is providing a market competitive rate, then it likely makes good sense to stay where they are and not go through the hassle of moving their mortgage to another lender.
But if their current mortgage provider is not competitive to other offers, then the cost of changing over can be a small fraction of what can be saved in interest costs over time.
In some cases, competitive offers for mortgage refinancing will also be prepared to pick up the mortgage transfer costs in order to gain your business.
The key is to do some ground work to determine if the renewal you have in hand is providing you with a competitive mortgage rate.
The best and simplest way to determine this is to work with an experienced mortgage broker who can quickly provide you with mortgage pricing options that are relevant to your situation and requirements.