Applying for Home Loans, All Mortgage Information

Renewal

Initial Consultation

Ideally, you should meet with your mortgage consultant anywhere from six of nine months before your current mortgage is due to renew. During this meeting our mortgage consultants will help you prepare for the renewal process by reviewing and discussing the following:

Determining any changes in your financial situation
Helping you set new goals
Establishing whether or not you would like to take any equity out
Choosing the best type of mortgage—fixed vs. variable—as well as length of term and rate
Comparing features such as pre-payments, amortization, portability, assumability and mortgage life insurance

Renewal Letter

Approximately three to six months prior to your renewal date, you will receive a letter from your existing lender offering you a renewal rate. These rates are often much higher than current market rates. When you receive this letter you should:

Call you current lender and discuss their offer. You should get complete details about the offer, including the interest rate and whether or not it is a promotional rate or a posted rate, the term of the mortgage, fixed or variable rate, when the offer expires, and what happens when the mortgage expires
Advise your mortgage consultant of the offer details so an informed comparison can be made

Application

The next step in the renewal process is filling out an application form. With the information provided in your application, our consultants are able to perform a credit check as well as prepare a mortgage solution to fit both your short-term and long-term goals. To complete the application process our consultants will need you to be able to provide the following:

Current financial information for applicants including employment, assets and liabilities
Detailed information regarding the current mortgage (current mortgage statement or original mortgage contract)

Submission to Lender

Once you and your mortgage consultant have chosen the best fit mortgage lender and product, an application is submitted, typically between four to six months prior to your renewal date.

Confirmation of Receipt by Lender

After the lender receives your application, it will proceed with the following:

Conduct an initial review of your application
Issue a rate guarantee for anywhere between 90 and 180 days

Note: some lenders have a best rate guarantee clause whereby the best rate between approval date and closing date will be given automatically.

Issue a list of conditions
Your mortgage consultant submits all necessary documentation to the selected lender

Mortgage Trend Review

From the time the lender confirms receipt until the closing date, the consultant will examine market trends and the interest rate environment and advise you if a better fit product or a better rate is available and whether a submission to a different lender is appropriate.

Financing

Once your mortgage consultant has submitted all the documentation to the lender, these steps are followed:

Lender sends the funds to your selected lawyer
Your lawyer finalizes the financing by paying off the existing mortgage and placing the new mortgage
For renewals with a different lender, the new lender often pays all legal and appraisal fees

Continuous Service

Your new mortgage is in place, but that doesn't mean your relationship with your mortgage consultant is over. Our mortgage consultants continue to work with for the lifetime of the mortgage. They can assist you with any of the following: