In recent years, it has been possible to predict the mortgage rate. It is even possible to determine it two years before the mortgage expires. This remedy is completely free. It is offered by many banking institutes. By referring to this method, you will be able to enjoy a sort of planning security. You will know in advance the costs generated by the mortgage as soon as it is taken out.
· As far as rates remain low
If you feel that mortgage rates are going to stay low again, there is no rush to renew the mortgage. You should know that some financial institutions require an express termination of the fixed rate mortgage. You have a notice period which can last between three and six months. Once this deadline has passed, it is highly likely that the fixed rate mortgage will automatically migrate to an adjustable rate mortgage. In this case, you will have to expect higher rates.
· In the event that rates rise gradually
If the facts point to mortgage rates going up in the next few months, renew your mortgage before it expires. As part of this refinancing, prefer establishments that do not apply an additional cost over 12 months or more. You should know that about 20% of financial institutions offer the Forward option for free 12 months, or even 18 months (according to the status of July 2020).
· If mortgage rates will skyrocket in the near future
With the expectation that mortgage rates will rise significantly in the short term, then consider freezing your mortgage as quickly as possible. Are you worried that this increase will be huge and that your current mortgage will end in more than 18 months? In this case, it will be necessary to consider fixing the rate at an additional cost.
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