THE PROS AND CONS OF AUTOMATIC MORTGAGE RENEWAL

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THE PROS AND CONS OF AUTOMATIC MORTGAGE RENEWAL
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• Renewing your mortgage automatically may not be
  the right choice for everyone, and a lot will
  depend upon your current financial position,
  youre your future financial goals.
• Lets look in a little more detail at the
  advantages of having a mortgage that renews
  automatically
• You could save money without new broker and
  lender fees
• You can save time and money if satisfied with
  your existing lender and the renewal terms
  theyve given you, and if you have a private
  mortgage, you may find that the renewal fee is a
  lot less than the fees charged to switch your
  mortgage.

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• Cut out the mortgage application process
• Provided you find the new mortgage interest rates
  and terms offered to you by your existing lender
  to be acceptable, then you could cut out the
  lengthy mortgage application process by sticking
  to what you have.
• You wont need to requalify for the stress test
• An automatic mortgage renewal means you wont
  have to requalify for the newly renewed mortgage
  and can avoid the increased stress test.
• Now, lets look in a little more detail at the
  disadvantages of having a mortgage that renews
  automatically

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• You could be paying more
• Its best to carefully review your mortgage
  renewal offer with a professional broker, who can
  help you avoid getting stuck in a mortgage with a
  higher rate of interest and additional renewal
  fees.
• You may miss the chance to consolidate your debts
• If you as many Canadian citizens do have
  high-interest credit card debt, car financing or
  student loans, you could save a lot of money by
  consolidating your high interest debt into a low
  interest mortgage, something you could miss out
  on if your mortgage automatically renews.

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• You could also miss the chance to pay down your
  mortgage quicker
• If, during your original mortgage term, you saved
  up extra money or gained a lump sum from
  somewhere, you could make a lump sum payment
  towards your principal mortgage balance, provided
  you dont allow your mortgage to renew
  automatically.
• You might not be able to switch your rate
• While a lot will depend upon the current economic
  climate, there are times when switching from a
  variable rate to a fixed rate mortgage renewal,
  and vice versa, might be worthwhile, but if you
  allow your mortgage to automatically renew, this
  may not even be an option.

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• If youre not sure whether an automatic mortgage
  renewal is the right choice for you, it can be
  beneficial to consult with a local mortgage
  broker, who can give you their impartial advice
  and help you get the best deal for your money.

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• Red Key Mortgage is located in Calgary, Alberta.
  We are a boutique brokerage with high volume
  serving hundreds of clients locally and
  nationwide every year. We have a number of
  associates dealing in mortgages as licensed by
  the Real Estate Council of Alberta. As a best
  mortgage broker in Calgary, Red Key Mortgage,
  will provide all of your available options from
  the entire mortgage market and allow you to make
  an educated decision where you'd like your
  mortgage to go. Red Key Mortgage works with big
  banks in Canada, as well as over a dozen other
  AAA lenders. Best of all, our services are paid
  for by the lenders at no additional cost to our
  clients. If you are looking for a 2nd mortgage in
  Calgary, contact us today! We can't wait to get
  started.