Many Canadian Homeowners are not aware that the end of your mortgage term signals the termination of the existing contract you have with your current lender. At this time you are able to switch lenders with no fees, no legal costs and no penalties.
In 2010 we saw the lowest interest rates for mortgages in history. However, only 72% of mortgage holders saw a decrease in their interest rate at renewal during that year.
There are several reasons that explain this troubling statistic.
Lenders renewal notices often will have the lenders posted rate or a slight discount on this rate.
Your lender knows that the majority of their customers will simply sign their renewal offer without negotiating for a better rate or shopping around to see what else is offered.
This costs borrowers thousands of dollars every year.
When you arrange your mortgage renewal with MyNewMortgage.ca we guarantee the LOWEST rate offered on the market. There is no negotiating and no haggling required.
Most lenders will send their clients renewal notices around 30 days or less before the maturity date.
What banks don’t tell you is what makes them rich and costs you money.
To ensure the best interest rate you should be locking in an interest rate 120 days before your renewal date. This means that should rates go up at all during the 120 day period before your renewal then you would be ensured the lowest rate. Should rates decrease then you still get the lowest rate.
Lenders send renewal notices so late so that the chances of you having to pay a higher interest rate to them are higher.
They also know that giving you less time is less time you have to shop around to places like MyNewMortgage.ca for a lower rate.