Mortgage Renewal

DON'T GET CAUGHT!! Let us help you save $1,000's in mortgage interest.

I get so upset when I see and hear of clients who have signed back their bank mortgage renewal without asking any questions or even exploring if the rate is competitive. In most cases the rate offer is not competitive and majority of Canadian's sign those letters back without even asking if the rates are competitive, thus wasting thousands in extra, unnecessary interest.

Client Mortgage Renewal Story

I was referred to another client whose 5 year mortgage was up for renewal with an institutional lender. They were coming off a 5 year rate of 3.89%. The bank sent him an early mortgage renewal offer with a promotional rate of 3.75% for a new 5 year term with an expiry date on the offer. Under pressure to meet the expiry date, his accountant suggested he give us a call just to confirm the rate is competitive.

Good thing he called. The "promotional rate" and time stamp on the offer are just an attempt to put clients under pressure to re-sign without time to shop around. Maturing 4 months later, he had lots of time to shop around and the 5 year rates at the time were around 2.64%. Promotional rate of 3.75% - yeah right!!!

Mortgage Renewal Options

There are a number of options available on your renewal. If your bank is not going to reward you with competitive mortgage interest rates, then you do not have to stay with them. Here are 2 options:
1) If you do not need any equity out, you can do a No Fee Transfer of your mortgage to a new bank with no legal or appraisal fees. You do not need to move your banking to the new bank that will do your mortgage. Your banking can stay where you are and your mortgage can be with any other bank who will then collect the mortgage payment from your bank account.
2) If you do need equity out for any reason, you can then do a mortgage refinance. This is where it is imortatnt to review your numbers to ensure your are covering all the bases and getting exactly what you need for the new mortgage term. Most banks will not cover the legal fees. Some will refund appraisal fees.

Please don't get caught. Every $ saved is a $ closer to being mortgage free.