Saving on your renewal is easy and free!

One of the biggest benefits of selecting a trusted long term mortgage partner is that upon renewal, you are always offered the lowest market rates. In comparison, Big Banks will almost always offer clients high, unfavourable rates that they think they can get away with. The unfortunate thing is that, for the most part, they do... Usually banks will offer a renewal rate that is somewhere between .25% and 1% off of their posted fixed rate. Many clients will accept this unfavourable rate for one of a few reasons:

    They believe that this is a good rate, or the best available to them.

    They believe that they are not able to transfer out of their existing mortgage.

    They believe transferring to a new mortgage will cost money.

    They believe that the process will be time consuming and stressful.

Thankfully, none of these realities are true. So why pay more when switching is fast, straight forward and there is no cost? You could save thousands of dollars in mortgage interest.

It is also important to reserve your mortgage renewal rate up to 120 days in advance. This is because rates change over time and because it gives you a bigger window of opportunity to achieve your lowest rate.

For example:

Lets try and wrap this text around the bad boy chart... still keeping spaces because people are retarded and don't like to see big bunches of words...

If on January 1st, the best 5 year fixed mortgage rate was 4.5%.

Your mortgage renews in about 120 days – or 4 months – on May 1st and you decide to reserve your rate of 4.5% on January 1st.

On March 1st, rates reach a low of 4% and you reserve this new rate.

Over the next month and a half the best rates increase back to 4.5% and your bank contacts you to renew.

Some time near the middle of April, your bank offers you 4.8% over the phone or in the mail with an explanation that this is a great offer and you need to decide soon because your renewal is due in about 2 weeks.

Your 4% rate in this example can save you thousands of dollars in interest over the next 5 years versus the banks 4.8%.

Although this kind of timing will not always be the case, it serves as an example to highlight what could easily be the situation for you. What do you have to lose by reserving early?

The bottom line is that it's important to give yourself as much opportunity as possible to save.

Contact me by phone or email for more information, and if you make the decision to switch, you'll be gaining an unbiased mortgage partner that will work with you over the long term to help you save thousands of dollars more.