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 at posted interest rates, which can be 2% above market, costing an individual $2000 per year per $100,000 of mortgage in additional interest.
Typical renewal letters offer mortgage rates 0.50% or greater above current market rates.
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 involves No appraisal costs, No legal fees, it is a clean and simple experience.
This is not ‘changing banks’ per se as there is no upset to any other business with your current lender, we simply provide a void cheque from your current account to the new mortgage lender and they draw payments from the account that you prefer.
It is something that we often try and set up 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.
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 life could save you thousands…per hour invested.
Rather than reward a lender preying on human nature to embrace convenience, let us do the work for you — the same convenience with independent advice, at a much lower cost to you. A product and terms that will suit your current situation.
Dustan – 604.351.1253