Difference Between Mortgage Refinance And Renewal
Mortgage refinancing and mortgage renewal are two different concepts in the world of loans and mortgages. But quite often people confuse the two terms and use them interchangeably. If you’re a seasoned investor and familiar with taking mortgages then you would know that mortgage refinancing and mortgage renewal are two different things. Most Edmonton mortgage brokers would push you into renewing your mortgage once the term is about to expire. But it is up to you if you want to renew your previous mortgage with the same lender or opt for a different mortgage option altogether and refinance your mortgage through other means.
In Canada, most lenders set shorter mortgage terms. They are shorter than the amount of time it would take to pay off the amount in full. For example, if you take a mortgage of $ 100,000 for your home at 7%, then you will have to make a monthly payment of $ 1726.44 for 30 years to finish paying the entire amount. But instead, lenders would have a set term of say 5 years, within which you make monthly payments and then at the end of the term you can either pay off the remaining amount in full or choose to renew your mortgage agreement for another term.
Lenders usually notify people about their term expiration well in advance. It’s up to you then whether you choose to renew your mortgage with your current lender or look for a different mortgage deal from another source. So, it’s best to do your research about other deals before you make your decision. But if you’re a client with Ratedeals.ca, then you need not worry. We offer you the best rates upfront. Our primary goal is to save you money on your mortgage renewal in Edmonton.
People choose to refinance their mortgage when they want to take more money on their mortgage or change the mortgage terms of their loan. As mentioned above, at the end of a mortgage term people have the option of ending their mortgage by paying the full amount or opt for a mortgage renewal. So refinancing your mortgage is like opting for a mortgage with different terms.
There are many reasons why people choose to refinance their mortgage. Some of them include, lower interest rates to pay off the mortgage faster, and to renegotiate your loan terms (in case you opt for a rate-and-term refinance option).
At Ratedeals.ca, there are four mortgage refinancing options:
- Private Mortgage
Or simply a new prime mortgage
If you are on the lookout for mortgage refinance, then contact one of our mortgage specialists. We will fetch the best mortgage rates for you.