Know Your Mortgage Renewal Options
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 ever shopping around for a more favourable interest rate, I would urge you to take a moment to check out your options.
Finding A Better Rate
Most standard mortgages are on a 5-year-term, meaning the market rates could be very different from the time you initially began your term to today! Despite this, lenders tend to provide higher rates on renewals versus new clients as typically the ease of renewal will prevent you from seeking out new rates. But, with my help, finding a better rate is not as difficult as it sounds – and it could end up saving you a couple hundred dollars a month!
Mortgage Advisor Insights
It may turn out that your bank is offering a great rate, in which case you can simply submit the renewal! However, I urge you to take this opportunity to contact me about finding a lower rate to ensure you aren’t missing out. As your trusted mortgage advisor, I have access to dozens of lenders and hundreds of rates allowing me to narrow down the best options for you.
Tim Ward, Collingwood Mortgage Broker.
Let Me Help
Ultimately, the best decision is the decision that is right for you. If you’re going lose sleep over the potential for your mortgage payment to increase, then maybe a fixed is right for you. But don’t forget, if you think you might want to make a change in the term of your mortgage, as the majority of us do, you could be penalized heavily by wanting to break a fixed rate mortgage.
Variables rates don’t only go up; they may go up, then come back down; they may go up, then sit flat for a long period of time. Who is to say when another event such as COVID may come along again keeping us in a low rate environment.
Your life is variable, so shouldn’t your mortgage be too?
