Congratulations on taking action on a topic that less than 30% of Canadians think about – An informed and competitive mortgage renewal.
70% of Canadians sign their renewal letters without any significant investigation of what other options may exist in the market. Many renewal letters are sent out by lenders at posted interest rates, which can be 2% above market, costing an individual an additional $2000 per year per $100,000 of mortgage in additional interest costs.
Switching your mortgage from one lender to another does not require any other significant changes to your banking. There are significant strategic benefits to having ones mortgage with one institution while maintaining a personal banking relationship where it is always been with a separate institution. For business owners we suggest corporate accounts be located at a third separate institution.
The processing of a switch typically involves No appraisal costs, No legal fees, it is a clean and simple experience.
We recommend beginning this process 4 months in advance to hedge against any interest rate movement. Waiting until a week or two prior to your renewal date is not prudent or in your best interest.
Don’t let the hassle from the first time you negotiated your purchase mortgage dissuade you. At mortgage renewal time you are in the drivers seat and have far greater power than you might believe.
A process that might take a few hours of your time could save you thousands.