Is your fixed-rate mortgage coming to an end? Want to get a mortgage on an existing property? Not sure, if you should go with mortgage refinancing in Surrey or opt for renewal. Don’t worry, in this blog post, we’ll take you through the basics of both so that you can make an informed choice.
Mortgages are confusing, if not always, most of the time. Renewing and refinancing a mortgage are two common terms you have often come across when it comes to real estate. Only an experienced mortgage broker in Surrey can assist you in deciding which one will work in your favour or repayment terms.
What’s Mortgage Renewal in British Columbia?
In terms of mortgage, renewal is needed when you get close to your maturity date or renewal date. This means your mortgage contract with a lender is about to expire but your balance is due and needs to be paid. You can choose to renew the same contract with your present lender or can even explore other deals they are offering.
Don’t make the mistake of signing a renewal agreement without exploring other mortgage repayment options. Renewals are often considered as they are:
- Quick to prepare and easy to sign
- Terms and conditions are already known
- Familiar with repayment schedule
Only renew your mortgage with a current lender, if the rate is competitive.
What’s Mortgage Refinancing in British Columbia?
If you want to take equity out of your property or want to minimise your repayments by extending your amortisation up to 30 years, mortgage refinancing is the best option. Homeowners often opt for refinancing if they want to switch from fixed to variable interest rates and vice versa. An expert Surrey mortgage broker can assist you in refinancing a mortgage to:
- Switch between variable and fixed rates
- Get a better interest rate
- Lower your monthly installments
- Consolidate several debt payments
When refinancing a mortgage, a borrower is responsible for paying the transfer fee to make a switch. If you are looking for a reliable mortgage broker near me, Sandhu & Sran Mortgages is the name to trust. We have years of industry expertise and follow a strategic approach to help clients make the right mortgage choice.