How to prepare for your 2024 mortgage renewal

If your mortgage is coming up for renewal this year, you might be feeling a little nervous about the process. How can you prepare for higher interest rates, and what should you be looking for in a lender and product? Here are a few tips to help you navigate the 2024 mortgage renewal experience!

Avoid an early renewal

Home owners with an upcoming 2024 mortgage renewal will likely hear from their lender in advance, with an offer to renew early. While the idea of getting the renewal process done sooner is tempting, we don’t recommend it. If you are renewing this year, you will be renewing at a higher rate than the one you currently have. This is the result of pandemic-driven inflation and record-high rate hikes, which are much higher than pre-pandemic rates. If you renew early, you will start paying a higher rate sooner than you need to. Plus, rates are expected to come down this year, so the longer you wait to renew in 2024, the better. There’s no need to take a higher rate early!

Some tips to put you on track

Mortgage renewal time can feel stressful, especially if this is your first time. It’s important for you to know when your renewal date actually is. We recommend you start planning for your renewal two months in advance. This gives you time to explore your options, secure the right product, and overall take your time with the process. This will help reduce your anxieties and nerves.

We also recommend shopping around during this time. Many Canadians renew with the same lender without looking around at other options. While your current lender might still be your best choice, this is not always the case. Your needs may have changed, and there might be another lender or product out there that would suit you better. It’s perfectly fine to shop around and see what else is out there before committing to a specific lender.

Knowing your interest rate will be higher once you renew, it’s a good idea to start budgeting early. Your mortgage payments will be higher, and this can be a strain for many home owners. Since you know this change is coming, you can start planning how you will handle it. You should understand your prepayment options, and if possible, make prepayments before your renewal. This will reduce your mortgage balance, and therefore the amount you will need to pay at a higher rate.

Use a mortgage broker for guidance

The most important part of preparing for your 2024 mortgage renewal is to work with a mortgage broker. We can help you explore your options, and determine whether a new lender or product might be right for you. We can also work with you to find a realistic budget, and form a plan to manage higher mortgage rates. It can feel overwhelming trying to figure all of this out on your own. The good news is that you don’t have to! We are here for our clients every step of the way.

Your renewal is an important part of the homeownership experience, but we are here to help you navigate all of your mortgage questions. Whether you are looking to renew, refinance, or purchase a property in 2024, you can reach out to us with confidence.

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.