While most Canadians spend a lot of time and effort when shopping for an initial mortgage, the same is not generally true with term-based mortgage renewals.
By omitting proper consideration at the time of mortgage renewals, Canadian citizens pay thousands of extra dollars every year. Nearly 60% of borrowers simply sign and send back their lender’s first renewal offer without ever shopping around for a more favourable interest rate.
Homeowners should never accept the first rate offer from their existing lender. Without any negotiation, simply signing up for the market rate on a renewal is unnecessarily costing them a lot of money.
Mortgage Renewals: Get a 4-6 month head start on rate shopping
Generally, it is a good idea to start shopping for a new term between 4 – 6 months before your current one expires. Many lenders send out your renewal letter very close to the time that your term expires. Unfortunately, this doesn’t give you enough time to arrange for a mortgage term through a different lender.
This means that you need to be tracking your own mortgage term timeframe and know when it is time to start shopping for a good mortgage renewal rate. Before you ever hear from your lender about renewing your mortgage term, have a licensed mortgage professional shop around for you. Their knowledge of the industry and market can deliver amazing results.
Your mortgage is one of your biggest expenses. For this reason it is imperative to find the best interest rates and mortgage terms you possibly can. By shopping around at renewal time, you can save substantial amounts of money over the life of your mortgage loan.
Don’t be one of the 60% who just simply sign their renewal letter and send it back. Use the services of a licensed Dominion Lending Centres mortgage professional to ensure lenders compete for your business.
Is your mortgage coming up for renewal? Allow me to provide some insights and options. My contact information.