home under renovation

Mortgages after Purchase

You have purchased your home with your new mortgage; what do you do with it down the road? Well, there are options to refinance, renew, or transfer. All of these options will occur at any point throughout the term of your mortgage. These are Mortgages after Purchase.


Say you have been in your home for a few years now. The value has increased and you have paid off a portion of your mortgage. Why add to your mortgage? Perhaps you wish to do some renovations or other debt with higher interest rates you wish to pay off. Well you have additional equity that you can access that you can receive in cash now. This will be added you your existing mortgage amount for you to pay back with interest.


Now, say you committed to a 5 year term and that time is now passed. You still owe the remaining balance of your mortgage. Your current lender will contact you with a renewal offer with the interest rate they can offer you on the remaining balance and amortization. Unlike the initial approval process, the renewal process is much less extensive – no pre-approval, less required documents and application processes as mortgages after purchase.


Instead of re committing with your currently lender, you find a competitive rate or more extensive product offerings at a different lender. All other factors (mortgage amount, home, ownership, etc) will remain unchanged except who the interest is paid to. You will them be transferring your mortgage from one lender to another, another example of mortgages after purchase.