October 2, 2013 | Posted by: Laking Financial
Mortgage Renewals - Do you just accept what the bank offers?
Given the large financial commitment of a mortgage, it’s surprising that over 44 per cent of Canadian homeowners either just accept whatever their lender offers at renewal, or don’t even remember how they renewed! Usually 3-4 months prior to your renewal date you will get a notice in the mail with some different renewal options. It's alarming how many Canadians just pick one, sign it and send it back without ever shopping around to make sure they are getting the best deal. When your lender sends you a letter saying it’s time to renew… what that really means is that it’s time to get advice. Professional, independent advice. That is where a mortgage broker can help you. We do all the shopping for you with all the top Financial institutions in the country and can present you the best offer you qualify for.
It’s tempting to just sleepwalk through the mortgage renewal process. But if you’re not doing even the slightest comparison shopping or negotiating, then you’re missing out on an opportunity to save thousands on your mortgage. You would amazed at how many clients have shown me their renewal offers from the big banks and the offers were nowhere near the best going rates at the time. After all, since they figured out that you are most likley not going to shop around they may as well make more money off the interest you pay. That is the main way we as Mortgage Brokers differentiate ourselves. We always present you our best rate up front, no jumping through hoops and playing games negotiating.
We usually recommend starting the process of reviewing your mortgage about 5 - 6 months prior to renewal so we can watch the markets and take advantage of the best rates. So if you have a mortgage coming up for renewal in the next 6 months contact us for a free consult to see what your options are. It could save you thousands of dollars.
What would you do with all that extra cash?