Canadians simply sign their mortgage renewal papers. A 2011 Manulife
survey found that almost two out of three Canadians surveyed stayed with
their current mortgage provider and didn't negotiate.
"Why?" My short answer: People
are busy, their lives are busy, mortgages aren't on their mind, the
maturity date comes and goes and they just sign back whatever is
If you are renewing your mortgage, here are four things to keep in mind before you sign that document.
The posted rate isn't the best rate:
Think of the posted rate as the opening offer in a negotiation, Banks
use the posted rate to provide a value proposition to their clients.
They often start with the posted rate and then offer discounts to
preferred clients. I want to educate you, my client, and help you shop
around for the best rate. I have access to a number of online lenders
and banks to get you the best rate upfront and do all the shopping on
your behalf, saving you precious time at no cost to you. In most cases I
get the lender to cover all your fees to move the mortgage as well.
Shop around: Do
your research before you sign an auto renewal with your current
lender: Don't have time - no problem, call or email me and I will do it
all for you. Once you know the rates offered for your preferred
mortgage term (fixed or variable), then I can shop around for a
competitive offer. If the offer you have is the best, I will let you
know and you have the peace of mind continuing with your current lender;
or if we find you something better we will make the change to a new
Bank or Monoline (online only, no branch to go into)
Did you know:
The general belief is that brokers can offer a better rate than banks
due to their access to multiple lenders. The Bank of Canada survey
found that using a broker can result in getting a lower rate. Part of
that is due to them getting multiple quotes from various institutions. I
always tell you, my client, that being loyal to your bank does not get
you a better rate. I will compare with banks and monoline lenders and
this is how we get you the best renewal rate!
Check the terms before you sign: The
cheapest rate may not be the best rate so always read the small print
before you sign. Make sure the rate you choose offers other options;
such as the ability to pay extra on your mortgage and clearly defines
any penalties should you decide to break your mortgage early. We have
"no frill" rates on the market now that have a very low rate but cheat
you in mortgage options and other rates that may not be the lowest but
have more mortgage options. I will tailor the mortgage to you based on
your needs and find a rate that fits.