Your mortgage loan falls due in a few months. The current rate of your loan for a 5 years term is 3,39%. Your financial institution offers you to renew by anticipation, 4 months before the term end, at a rate of 3,09% for a new 5 years term.
Is it a good idea?
No, and in here is the reasons: The present offered rate could reduce again during these few months preceding the real date of the renewal and your loan having been renewed by anticipation, you would not benefit from this reduction.
Furthermore, chances are that the mortgage rates at the end of this new 5 years term will be higher than your actual mortgage rate. Therefor you would lose the benefit of a 3.39% rate for a few months.
The solution: Contact your mortgage broker 4 months before renewal date. Your mortgage broker is capable of reserving your rate for a period of 120 days and so to assure you of the best available rate on renewal date.