Renewing your mortgage – three reasons to talk to us first
Reason number one – you simply went to “your bank” and didn’t shop around for a lender or mortgage rates the first time! You took the advice of your parents or simply went to your bank branch. That can lead to unhappiness with the service, advice, terms of the mortgage or the interest rate at renewal time. All mortgage holders have the option to review their current mortgage and to transfer to a different lender as the mortgage at renewal.
If that’s a situation you find yourself in, there are many great options, and we can help you make the best decision going ahead.
It’s worth a little effort to save thousands of dollars
Reason number two – most lenders, especially the big banks, will send you a renewal letter when there is still three months in the remaining term. Sometimes that letter could come with six months before the renewal date. Typically, the lender will offer you a rate at that time and all you’ll have to do is sign at the bottom line to your mortgage starts over in a new term.
But beware, lenders often offer a higher rate to current clients than a new client because they’re hoping the ease of renewal (just sign on the dotted line) will keep you from seeking out a new lender and lower rate. Renewal rates are a current lender are as much as .5% up to 1% higher in some cases than rates a new lender. The higher rate equals way more in interest costs during your next mortgage term.
It’s the perfect time to review and build a mortgage strategy
Reason number three – has the current lender offered a mortgage review, explained the important difference between fixed rates and variable rates, and offered advice on planning for your future mortgage needs? Here are some of the questions we ask our clients at renewal – what are you plans for work, family, travel, and savings? Do you plan to sell the current home within the next five years? Would you like the purchase a new home in the next five years, down size, or pay down consumer debt?
The answers to these questions allow us to come up with a mortgage strategy that works for now and the future!
Changing lenders can lead to saving thousands of dollars, it should certainly be something to consider. Our 15 minute mortgage reviews are free, fast and very efficient. If we find that your current lender is offering a good option we promise you we will let you know! Occasionally staying with the same lender is best but most often there are better options and rates out there!
Before you sign your mortgage renewal, contact us. You may be surprised how much you can save and how many options there are that suit your needs!