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Is 2019 a Good Year to Renew Your Mortgage

When your mortgage is up for renewal you might be wondering if your new rate is the best rate you can get, if it’s a good time for renewal and when the best deal is for you. In 2019 many home owners across Canada will be renewing their mortgages and hoping their payments don’t go up. 2019 is shaping up to be a good year for renewals and here’s why.

Is 2019 a Good Year to Renew Your Mortgage

Competing for Your Business

While there are standards when it comes to rates lenders can give, they are still looking to pick up your business and want to work with you. 2019 is a great year to shop around and look at some of the options you have when it comes to your mortgage. Just because you’ve always used a certain lender doesn’t mean that lender is best for you. Some lenders will offer discounts based on various criteria so it’s worth it check out the competition.

Variable Rates are Going Down

Current home owners with a variable rate mortgage are paying about 2.89% whereas renewing variable rates today are hovering around 2.60% so it could be beneficial for even those with variable rates to look at renewing this year. With a variable rate mortgage, home owners are at risk for increasing rates and would be subject to any changes in the market but if you are comfortable with that risk and want to take advantage of a lower rate right now then this might be the perfect time for you to do it.

Better Fixed Rates

When surveyed, Canadians are paying about 3.65% on a 5 year fixed mortgage, but at this time they can renew for somewhere around 3.35%. At these rates, if home owners renew and keep their payments the exact same they could easily pay down their mortgage at a faster rate sine more of their payment will go towards their principal amount. While you may be taking your time to shop around, if your mortgage is up for renewal and you prefer a fixed rate mortgage then now might be the perfect time to lock in at those rates.

Secure your Finances

There is a lot of concern about what will happen with rates in the coming years as The Bank of Canada seems to continue to increase its prime rate. If your mortgage is up for renewal and you can get a lower rate then you know that’s your rate for the next 3, 5, 7, 10 or more years. This means you will know exactly what your monthly mortgage amount is going to be so you can budget accordingly. Taking advantage of low rates when you can get them, and locking them in, will definitely make you feel better when the rates are increasing.

Renewing your mortgage can be scary since you don’t know what you’re going to get, and you might feel like you’re at the mercy of your lender but you do have some options so explore them and find the best mortgage terms for you!

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