Let's break it down, shall we?
Renewals
When the maturity date of your existing mortgage approaches, it’s the perfect time to assess every available option before committing to a renewal. When you work with a mortgage broker at renewal time, they can show you the competitive financing options available to you from different lenders and go over your personal finances to see whether or not it’s worth switching. Oftentimes, your current lender will offer you a reduced interest rate on your existing mortgage – which is certainly enticing.
There are times, however, that plans with slightly higher interest rates could still be more appealing to you. For example, you might currently have a fixed-rate on your mortgage that comes with higher penalty fees if you were to break your mortgage term early. If there’s a chance that you might move out of your current home in the future, or before your renewed mortgage term’s maturation date, then it might be a better option for you to switch to a variable rate mortgage that has significantly lower penalty fees for breaking the contract.
During the time that you’ve had your mortgage, you might have accumulated debt on your line of credit, your credit card or from unsecured loans. When your mortgage term has matured, it might therefore be the ideal time to look at your refinancing options so that you can consolidate your debt into one source with lower interest rates. In this case, choosing a new lender that has competitive refinancing rates could be the better option for you, rather than renewing your current mortgage. At the end of the day, there’s no harm in meeting with a mortgage broker to go over your options so that you can decide what’s best for you.