Wednesday, October 14, 2015


Many 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 offered."
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 one.
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.
"Mortgage Options. . . NOT . . . Restrictions!


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