Renewals - Why its so important to check out your options

When you bought your first home, chances are you did research on mortgage options and
rates - renewals should be no different. According to Canada Mortgage and Housing Corporation (CMHC), 60% of Canadians simply accept the renewal rate from their current lender without shopping around. By doing so, there is a chance that you could be paying thousands of extra dollars when it could have been prevented.

For example, a client whose renewal date was due last year and the bank offered her 4.39%. A mortgage broker was able to get her 3.99% at a different chartered bank. On a $300,000 mortgage, that is a savings of $66 per month, and an astounding $5,751 over the 5 year term!

Instead of paying that to the bank, why not invest it, put it towards your principle, or take a vacation on a sunny beach?

Don’t Settle For Less!

Don’t fall into the trap of accepting your lender’s offer at your renewal date. Most banks assume you will sign without checking out the competition – and they know it!
When your mortgage comes due for renewal, it is the perfect time to seek out the best rates and adjust the terms to your changing lifestyle or financial needs. You may need money to consolidate loans at a lower interest rate, do renovations, or take equity out for buying an investment property. Considering these options at the time of renewal is the best time for this as you will not pay a penalty to change your mortgage amounts and terms.

Protect yourself from potential rate increases

With a mortgage associate, you may lock in a rate up to 120 days prior to renewal date. This acts as a safety net that protects you from rising interest rates, while benefiting from lower rates should they decrease.

Renewal is Free

Assuming you don’t have a collateral mortgage and you don’t change anything on your mortgage, switching to another lender is usually free. There are NO penalties to switch lenders.

Is there an obligation to stay with the same lender at my renewal date?

Absolutely not! Remember, there are NO penalties for switching lenders at renewal date.

Let a mortgage associate take care of your renewal worries

Here are some benefits of informing a mortgage associate when your renewal date is due:

Convenience– No need to think about your renewal date, or haggling for the best rate. I do all that for you.
Automatic System– My system will automatically send you a reminder, and we will always follow up with a call.
Rate Shopper– I will shop the market for the best rates at your renewal while you sit in the comfort of your own home.
Save Money– As in the example above, I saved my client $5,751. How much do you want to save?

At the end of the day, we all want to save money in the easiest and most convenient way possible. Contact me to for a great mortgage associate to be reminded about your renewal, and shop for a mortgage catered to you.

Catherine Ta

Catherine Ta

Affiliated Real Estate Agent
CENTURY 21 Vantage Realty Ltd.
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