Time For A Mortgage Renewal

Is your mortgage coming up for a renewal this year?

There is a good chance that you or someone you know has a mortgage coming due. Some 47% of Canadians that currently have financing in place have mortgages that will mature within the next 12 months with a major lender in Canada.

Here are a couple simple rules to follow if you, a friend, a family member or colleague are renewing your mortgage this year.

Do Not just simply sign the renewal letter that comes in the mail.

Investigate your options.

70% of all mortgagers simply sign the renewal letter that comes in the mail. You would think that because you have been with the current lender for so long that you would receive the BEST rate out there. In almost all cases that is not the reality. Remember, lenders are in the business of making money for their stakeholders. Your current lender has done their homework, you should do yours. They know that most of the borrowers will sign and send back the form for ease and convenience.

Here’s an example based on a $450,000 mortgage amount.

For every 0.25% difference in the rate the mortgage payment increases (or decreases) $13 per every $100,000 extended.

If your current lender offered you a rate 0.25% higher than another lender then this scenario would yield an annual increase of $936. Are you able to invest 4- hours of your time to save that kind of money? You should!

How we can help you

Renewing with your existing lender may or may not be your only option. When 47% of you out there receive the renewal letter in the mail this year, talking with an experienced Mortgage Advisor should be your first step. At Client First Mortgage Solutions we can review all of the options available to you, like switching lenders to save money, leveraging equity for financial planning purposes, and more. Be sure to read 10 things to consider before your mortgage renews on our website for more information and contact us today!

Original Article – Dominion Lending Centres – March 7, 2018