Save Thousands by Negotiating Your Mortgage Renewal Rates: Don’t Leave Money on the Table.
How to Save Thousands by Negotiating Your Mortgage Renewal Rates
In the face of higher costs, more Canadians are changing their grocery shopping habits, hunting for bargains, and switching to lower-cost brands. However, many are leaving money on the table when it comes to their single largest transaction: their mortgage renewal.
Canadians Are Leaving Money on the Table
According to a recent survey by Mortgage Professionals Canada, homeowners are doing less haggling at renewal, despite most facing higher interest rates. The study found that 41% of borrowers accepted the initial rate offered by their lender, up from 37% two years ago. Furthermore, just 8% say they “significantly” negotiated their rate at renewal, down by half since 2021, when 16% haggled aggressively.
Robert Jennings of East Coast Mortgage Broker notes, “In the second half of 2019, Mortgage Rates were well under 3%, so the mortgages that come up for renewal on a go-forward basis, rates are close to double.”
How Rate Shopping Could Save Borrowers Thousands of Dollars
Jennings highlights the potential savings that Canadians could achieve by shopping around. For example, a borrower with a $450,000 mortgage could save $170 per month and pay off $5,000 in principle over five years by finding a lower rate. Nolan Smith of TMG Oceanvale Mortgage & Finance adds, “That’s about $15,000 in total savings over five years.
Fear and Uncertainty Could Be to Blame
Nolan Smith suggests that fear and uncertainty are key reasons why many Canadians do not negotiate their mortgage renewal rates. “When people get scared about what’s going on, they kind of glob onto what they know,” he says.
The Importance of Shopping Around
Mortgage expert Ron Butler, Smith, and Jennings agree that it’s crucial to do your research, shop around, and work with a mortgage broker to find the best deal. “There’s all kinds of online information about what rates are like – it’s easy to look at mortgage rates today and compare terms and rates – so why not?” Butler says.
Why You Should Contact Client First Mortgage Solutions
If you don’t want to leave money on the table when it comes to renewing your mortgage, contact us. When it comes to Mortgage Renewal Rates, negotiating for better rates and shopping around is what we do to save you money. For personalized advice and to explore your options, contact Client First Mortgage Solutions in Maple Ridge today!!!
Original Article – June 12, 2024 – Canadian Mortgage Trends
