Congratulations on your maturing mortgage...now let me help you get a better rate!
If your mortgage renewal is fast approaching then you’ll soon be at an important financial milestone. Now's a great time to look at the many innovative options and competitive rates available.
While most Canadians spend a lot of time, and effort, in shopping for an initial mortgage, the same is generally not the case when looking at mortgage term renewals. By omitting proper consideration at the time of renewal, this practice costs Canadian citizens thousands of extra dollars every year. Don't let this happen to you!
Lenders send out renewal forms just prior to renewal dates to those with good payment histories, with about 70% of homeowners sending it back without asking any questions. In today’s hectic world, that can be the easiest and best route, but is probably going to cost you money!
You should ask yourself some questions before you sign on the dotted line. This could be an important moment of opportunity.
Maybe your mortgage needs have changed. This is the time to decide. For example, you may want to consolidate high interest debt in with your mortgage or you may want to tap some of your home equity for a renovation project? Or maybe you’re considering a cottage or vacation property. Are you confident you will get the best rate at renewal?
Don’t renew your mortgage with your eyes closed!
At renewal, you can renegotiate everything pertaining to your mortgage - amortization, rate, term etc. with no penalties. Your lender will be interested in seeing you come back, but it's important to investigate your options and make sure you are getting the best possible deal.
A major financial institution's consumer debt survey found two-thirds (65%) of homeowners did not compare mortgages from more than one lender when they last renewed.* In fact, 20% stayed with their current lender after maturity and did not negotiate; several banks will auto-renew you at posted rates versus fully discounted rates, which can be a difference of hundreds of dollars a month. Don't renew your mortgage with your eyes closed!
Mortgage renewal is also an important time to decide if you should roll your high-interest credit cards and other debt into your mortgage to get one lower payment, boost your cash flow, and save on interest costs. Or perhaps it's a good time to take some equity out for renovations, a second property or for investing.
I work for you and am in touch with a wide variety of lenders so I can always make sure you are in the best position possible. When you are six months from renewal, be sure to contact me so we can review all of your options and strategies, not just those presented by your current lender.
Having multiple lenders compete for your business is a great way to ensure you get the best rate for your situation. We deal with multiple lending institutions, including major banks, credit unions, trusts and other national and regional lenders, which means we can put significant negotiating power behind finding the best mortgage to fit your specific situation.
There are some great options out there - from a wide range of lenders; let me help you look around.
Give me a call today!