Your Mortgage Renewal will NOT be subject to the new Stress Test rules if you had your mortgage PRIOR to the new rules being implemented in October/November 2016. Despite what you may be hearing, if your mortgage funded prior to October/November of 2016 you do have the option to switch your mortgage to another lender and qualify at the rate you will receive with the new lender and not the higher benchmark rate. This increases your odds for securing a great rate at renewal. If your mortgage is up for renewal you can be approved with a guaranteed rate up to 4 months prior to your renewal date. With rising interest rates, you will be confident you will have secured a better rate than your current lender will be in a position to offer you at renewal.
Mortgage Renewal is the greatest opportunity during the life of your mortgage to negotiate the best rate and make changes that are reflective of your lifestyle and not incur a penalty. You can increase or decrease the payment amount, choose a new payment frequency, change your amortization or the type of mortgage you have…fixed to variable, variable to fixed or possibly add a line of credit. Or you can simply leave all as is and focus on a competitive rate.
Today more than ever rates and qualification criteria fluctuate. Discussing your options with a mortgage broker will enhance your opportunity. We all aggressively seek the best rate when we are purchasing a home – why wouldn’t we do the same at renewal?