The decision to renew or refinance is a personal one, and homeowners should consider both their financial circumstances and terms of their mortgage.
If you have a mortgage with TD, you can renew your mortgage starting 120 days (4 months) before maturity without facing a prepayment charge. If you opt to renew, you’ll have a chance to take advantage of competitive interest rates and agree to a new term.
A lump sum payment is a payment you make toward your mortgage, outside your regular payments.
If you have some extra cash available, you might want to apply that money as a lump sum payment towards towards lowering the principal of your mortgage to help reduce the total amount you owe on your home.
However, you should find out from your lender if there is any prepayment fee that would have to be paid as well.
I have some extra cash. Should I use it to pay down my mortgage?
We recommend starting the mortgage renewal process early. Lenders may let you renew your mortgage loan up to 120 days before maturity without the a prepayment charge.
When it comes to renewing a mortgage, it’s important to know all the options available to you. You’ll want to look at the various offerings from your lender and re-evaluate your current financial position and goals to determine the kind of mortgage loan right for your lifestyle.
My mortgage is up for renewal soon. What can I do to get the best available rate?
A fixed rate mortgage means your interest rate will not change over the term of your mortgage loan, and neither will the amount of your principal and interest payments. People might opt for a fixed rate mortgage so they know what their mortgage balance will be for the duration of their mortgage term.
People with variable rate mortgages can experience the fluctuations of any change in the central bank’s lending rate. When rates fall, Canadian homeowners with variable rate mortgages who have fixed payments would see a higher proportion of their payment go towards the principal amount on their mortgage.
If you do choose a variable rate mortgage and rates begin to rise, there is always the option to switch to a fixed rate mortgage at current rates, subject to certain conditions.
Q4
Q3
Q2
Q1
Is locking in a fixed mortgage rate a safer bet than a variable mortgage in today’s economy?
Mortgage renewal or refinancing: Which is right for today's market?