Is your mortgage coming up for renewal?
Don’t be too quick to sign that mortgage renewal letter. Over 70% of Canadian mortgage holders do just that, and what is the usual result? A higher rate and a mortgage product that might not be best suited to your interests.
Experience has shown that the “Big Banks” send their mortgage renewals out at a posted rate.
Lenders are counting on the fact that most home-owners are too busy to ask questions or to inquire about getting a better rate, but don’t let this happen to you. Posted rates are way too high of a rate to lock into, which can cost you thousands over the term of the mortgage.
You should recognize that you are now negotiating from a position of strength as your mortgage principal has dropped and in most cases your home value has increased.
Lenders see you as a lower risk borrower and consequently you should be getting the best rates available. That may not happen if you simply sign the renewal document provided by your existing lender.
Rather, let the lenders compete for your business to be sure you do in fact get the best mortgage possible.
A mortgage broker can do this for you. He or she can review your current situation and ensure you get the best rate and terms available. In most cases there is no fee.
