Renewing your mortgage is something that most people take for granted, but with some help and a little bit of effort, you can save thousands of dollars. Imagine what you could do with a few extra thousand dollars—a kitchen renovation, a 5-star family trip, a backyard pool—and it all starts with a simple phone call.
Let me handle the details, shoulder the stress, and worry about the specifics. I’ve done this hundreds of times. I’ll put your mortgage renewal on my mind. You can start dreaming of what to do with the money you’ll save.
With a mortgage comes a mortgage renewal.
In Canada, mortgages are typically offered with terms of up to ten years. When your term is finished, your rate expires and it is time to negotiate a new rate.
Many Canadians spend a great deal of time shopping around to find a favourable rate when purchasing a property.
Usually, your lender will reach out to you within 120 days of your renewal with an offer for you. Sadly, the rates offered are not very favourable and many do not invest the same amount of time at renewal shopping around. This results in renewal with their current lender’s less favourable rate offer.
Many feel their loyalty to a lender will be enough for their lender to proactively offer the best rate and others do not have time or the interest to start the rate shopping process again at each renewal. Lenders can take advantage of this at renewal as they know that 80% of people simply sign and return the renewal offer and documents.
The Bank of Canada confirmed that those who switch lenders at renewal or those who renew with a broker’s series save more than those who renew directly with their lender.
Each point saved on the rate counts. A 0.2% savings on a rate, on a $300,000 mortgage, will save you over $2630 over the next 5-year term for example.
When you are up for renewal you have three main options:
I hear from many clients that their lender has called them with a “limited time offer” that needs to be accepted right away. Also, they will need you to renew early to take advantage of the offer. This, unfortunately, limits your time to shop around. The offer is usually not very favourable compared to mortgage broker’s options and if you have a lower rate then you can still hold onto it for a few months before you renew, you will lose those months with the lower rate, which can add up.
Banks and lenders have many ways to help boost profits for their shareholders. Unfortunately, the billions of dollars of profits banks make each year is made up of the fees and rates we pay.
Next time you’re looking for a mortgage renewal or thinking about making a mortgage switch in Ottawa, I can help. I look forward to keeping more of that money in your pocket at renewal and not in theirs.
Many homeowners are under the impression that they are left to the mercy of their bank. This is not the case, and I’ve been happy to negotiate better rates for many of them. When it’s time to sign for a new term, don’t worry – I can provide you with more choices and more freedom. That way, we can finalize renewal terms that work best for you. After all, it’s your home we’re talking about, so let’s see whether staying on or switching are sensible options.
I’ve been fortunate enough to work with many homeowners from a variety of backgrounds. Some seek renewals on the mortgage for their first home and are overwhelmed by which direction to take. Others are stressed over payments and yearn for better rates. With many years of practical experience as an Ottawa Mortgage Broker and plenty of client success stories under my belt, I’m happy to ease your worries, help you renew your mortgage with care, and deliver true peace of mind. That way, you can continue to enjoy your home – and with fewer headaches.
My approach is very hands-off, alleviating the burden of having to do all the hard work yourself. This is especially important as it can be difficult for homeowners to keep up with market trends and ever-changing lender terms, but I’m here to act as your translator in plain English. If you have concerns regarding your credit score, eligibility for renewal or otherwise, don’t worry – I’m here to ensure you take appropriate steps while getting the most out of your home investment. And, if you need to reach out to me with a question or concern, I’m only an email or phone call away. Your personal details are safeguarded in the strictest confidence, and I take every precaution to provide accurate information when you need it.
Renewing your mortgage is one thing, but renewing your mortgage under terms and conditions that benefit you as the homeowner? That’s not as common. I’m here to ensure we avoid roadblocks and finalize plans that best align with your budget and long-term goals, made possible by a personalized approach to renewal services. Rather than encourage you to sign right away, my aim is to clarify any grey areas and ensure you fully understand the terms and conditions in front of you.
