Over the next few months, many mortgages in Canada will be coming up for renewal and will start to receive renewal letters in the mail from their bank. Mortgage renewal letters will typically read in a very unassuming manner; the bank is simply looking to help you lock in and make your mortgage renewal as simple as possible. However, it isn’t that simple. Your bank will make every effort possible to try and lock you in to a mortgage renewal up to six months before your renewal date – they do this because they don’t want you to do your homework.
In your renewal letter you may see the ‘limited-time’ or ‘special offers’ from your bank. While these offers may initially seem enticing, they really are anything but special; in fact, these deals are typically among the worst available to you. The bank hopes to appeal to your comfort zone; hopes that you’re uninformed when it comes to mortgages and that you won’t ask for something better.
While your bank claims to value you greatly as a customer and they are dedicated to helping you become mortgage-free as fast as possible, then why is it they don’t offer you their best mortgage products up front? Because of one thing – profits.
What to do?
If you refrain from renewing early then you’re taking the first step towards getting mortgage-free as quickly as possible. You have choices for managing your largest debt and we can help you demand more for your mortgage. Four months prior to your renewal date, we can shop your mortgage around the marketplace from over 30 different lenders, major banks, trust companies credit unions and mortgage lenders in order to get the mortgage that best suits your needs, your budget and your goals.
Remember – don’t fall for the scare tactics when it comes to your mortgage; get a mortgage that puts more money in your pocket, not your banks.
Work with a mortgage broker who works for you, not the lender, and has your best interest in mind.