Mortgage Renewal
Mortgage Renewal is a great time for individuals to take advantage of a new rate or product to suit their changing needs. Unfortunately Mortgage Renewals are one of the most neglected decisions made by Canadians.
Watch our Mortgage Renewal video explaining everything you need to know about renewing a mortgage in Canada. We will walk you through the entire process from start to finish. We are here to make sure you get the best rate and product possible on your upcoming Mortgage Renewal!
The Process
When your mortgage term is coming to a close, most banks will send a Mortgage Renewal notice in the mail approximately one to two months prior to the end of the term. On this notice, banks will always offer you a high rate and assume that you will sign on with them for another term. They typically only offer you their posted rate with very little or no discount.
CMHC stats show that over 60% of all Canadians accept the first rate their bank offers. They will stay with their existing mortgage lender because they believe it is too time consuming to shop around for a better rate. Or, they may think the offer from their existing bank is the best deal available. This is not true!
Big Bank Policy
Traditional big bank policy is to at best discount the posted rate by 0.10 to 0.50 percent. Our experience has shown that on average, most banks offer their renewing clients a discount of .25% off their advertised rates. If the client does manage to negotiate a better rate, it's usually a maximum ceiling discount of .50%. This is the maximum the branch allows the mortgage representative to discount any mortgage product. Some special cases are given for clients who have many investments held within the bank. For the most part however, there are no exceptions made.
When a mortgage comes up for renewal many people overlook three significant opportunities to save money.
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They wait for their bank to notify them that their mortgage has matured. Therefore they are pushed to make a fast decision and accept the banks first offer. If you find that you waited until the last minute, you can actually ask your bank to move your mortgage to an open mortgage so you have time to decide on the best product.
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They don't negotiate a discounted rate. As mentioned, the bank will always start by offering a higher rate. You can always do better than the first offer no matter who the lender is.
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They don't research the market to see what other lenders are offering. The Canadian mortgage market has become very competitive with many different products available. Banks will compete for your business! Talk to a broker and have them find you the best rate. Lenders will actually offer lower
rates to a broker, this is because they know this market is much more competitive.
Not taking advantage of these opportunities will definitely cost you money.
Transferring a Mortgage
A major misconception among homeowners is that switching your mortgage between lenders will incur penalties and fees. The truth is, it is absolutely FREE! The big banks know that most homeowners don't know or understand transferring a mortgage is free and they certainly don't want you to know.
If you simply switch your mortgage to a new lender, you will not be subject to any fees or payout penalties if
you are switching at renewal time. If your mortgage is in the middle of a term, there may be a penalty to switch. However, we have found that paying the penalty in many cases to change institutions to either get a lower rate or a better mortgage product can save a homeowner thousands of dollars.
Once you are qualified, your current mortgage balance and the remaining amortization period are transferred to your new lender with your new interest rate in place.
You should start thinking about switching your mortgage between 90 and 120 days before your mortgage
renewal date. This not only gives you ample time to complete the process, but also protects you against any interest rate fluctuations that may occur prior to your renewal. If you get pre-approved with a new lender 4 months before renewal and interest rates start to rise, you will always be guaranteed the lower rate.
How We Can Help
We work for you, not the bank! Our brokers offer you the expertise and resources so you can take advantage of the competitive mortgage market. We deal with over 75 lenders across Canada to find you the best possible mortgage to fit your needs. We are an independent company with the sole purpose of finding you the best mortgage rate and product in Canada. Our brokers will save you time and money by negotiating a better rate on your behalf at no cost to you! That's right, our services are absolutely FREE!
Our Mortgage Renewal rates start at 1.00% to 1.75% below the banks posted rates! This is just the tip of the
iceberg. Our true advantage is service! We don't stop at the application. We assist you in gathering all
information that the lender requires. We strive to make your Mortgage Renewal a smooth transition. Unlike the big banks, we work hard to earn your business and to keep you coming back! We guarantee to offer you
the best discounted rate offered by any of our many lenders without having to play the "big bank" negotiation game. We guarantee you the best rate on the first offer. We will take care of you before and after each of your Mortgage Renewals and throughout the life of your mortgage to ensure you always have the best product possible!
Getting Started
The next step in the Mortgage Renewal process is to obtain a pre-approval from a bank or lender. A pre-approval is simply a rate hold, typically for 120 days. This allows you to get all your financing setup prior to
the end of your current mortgage term. A mortgage broker will help you acquire the pre-approval so you are
confident you have the best product possible.
Get Pre-Approved For Your Mortgage Renewal...Its Quick And Easy!
Mortgage Renewal Application
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