(January 9, 2022)
Intro (pre-amble): up to 17:58 mark of podcast (Politics & Onion Peeling | Whats worse? Rising interest rates or rising inflation? | Time to move to Calgary? | Interest Rate wrap up)
When it comes time to renew your mortgage, most lenders will send you a renewal letter when there is 3 to 6 months remaining on your term. While nearly 60% of borrowers simply sign and send back their renewal without even shopping around for a more favourable interest rate, I would recommend you take a moment to check out your options.
Rather than rewarding loyal clients with fully discounted interest rates, lenders tend to provide higher rates to renewing clients versus offering fully discounted rate specials to newly acquired clients. Generally speaking, the path of least resistance (when renewing your mortgage) often leads to higher interest rates. Instead, seek options and second opinions before accepting your incumbent lender’s renewal offer. The outcome in doing so can result in thousands of dollars in savings over the course of your next mortgage term.
It may turn out that your bank is offering a great rate, in which case you can accept the renewal and move on…but whatever you do, don’t simply assume that you are being offered their very best rate at renewal time. Take the extra time to explore your options, you’ll thank yourself you did! At the very least, by exploring your options you can be rest assured that you signed up for a competitive rate.
To make the exploration process simple, connect with a mortgage broker rather than a single channel bank as mortgage brokers have access to multiple lenders and can explore a broad range of offers with one single application and credit check. Give me a call or send me an email and within minutes I can provide you with today’s best market rates. Call or text me right now for real time market rates at 604-800-9593.
Other related blogs: The Secret to Renewing your Mortgage
Contact Marko, he’s a Mortgage Broker!
604-800-9593 direct Vancouver (Click Here to schedule a call with Marko!)
403-606-3751 direct Calgary (Click Here to schedule a call with Marko!)
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