Mortgage Renewal

Home Owners often make the mistake of not being pro-active when it comes to their mortgage renewal. Many home owners simply receive a letter or a phone call from their bank near the end of their mortgage term, asking them to renew their mortgage, and the home owner signs the renewal agreement. STOP.

Consider the following:

A Manulife Bank study found that:

• Almost two in three respondents failed to compare products from various lenders the last time their mortgage came up for renewal.
   
• The youngest group was most likely to shop around (41%) but also most likely to accept their current lender’s offer without negotiating (24%).

A report by the Bank of Canada in February 2011 found that "high-income borrowers pay more for their mortgages, as do loyal consumers, consumers who search less, and those that value large branch networks. Unobserved bargaining ability also appears to play an important role in determining mortgage rates"

Overall, countless studies have found that

1. Most home owners do not shop around at renewal, and
    
2. Home owners who do not shop around at renewal pay more.

Let me ask you this: If you were buying a car - wouldn't you check around at a few dealerships to compare prices? Why should it be any different with your home/mortgage, the largest purchase and investment that most people make in their lives?

Be smart - Be Pro-Active!  Contact me 4-6 months before your mortgage is up for renewal to explore mortgage rates and options.

This will also allow me to get you a 4-6 month RATE HOLD, which means that if rates rise before your renewal, you will still be guaranteed the best rates.

More on Mortgage Renewal and the Importance of Getting a 2nd Opinion before you sign
~Blog of Jennifer Woodley