As long as you are at the end of your mortgage term, there are no costs, appraisal fees, legal work, or penalties to transfer your mortgage from one lending institution to another. The mortgage renewal is often the most neglected decision made during the lifetime of a mortgage even with all these benefits.
Homeowners will not shop around and will continue to stay with their mortgage lender. They often feel that the process of shopping their mortgage is time consuming or too difficult. Many also believe that their current offer from their bank is in fact the best deal around. Many times this is not the case.
Experience and history shows that most banks will offer a renewing client a discount of 25% off their posted rates. Negotiating this rate discount may also prove to be time consuming and does not always lead to the lowest loan rates.
When the client does manage to negotiate a better deal, these deals might have a maximum ceiling discount of 1%. This may represent the amount that the branch allows the mortgage rep to discount any of their available mortgage products. These discounts might only be available to certain individuals who hold numerous investments held within the bank. For many of us, these exceptions are not made available to us.
It is important to work with the right mortgage broker, who will treat you with courtesy, respect, and privacy. The best rates should be posted for all clients and the same dedication should be afforded to each client while finding the best mortgage solutions for their needs.
The real benefit to using a mortgage broker is that you are working with a professional that spends 100% of their time on the mortgage market. This is very important when their goal is to provide you with the very best mortgage rates and service that every client is entitled to.
When your current mortgage term is complete, or your mortgage is getting close to renewal, it is wise to remember these two great opportunities to save some money:
1) Do not wait for the Bank!
Make an appointment with your lender at least 3 to 4 months prior to your renewal date to discuss your options and to see what kinds of service that they can provide for you.
2) Keep on top of your lender
Negotiate with your provider and be confident as to what their best renewal mortgage rate can be. Once you have a suggested rate, make an appointment with us and we’ll make sure to beat their best rates at no extra cost to you!