Renewing your existing mortgage
Did you just receive the renewal notice for your
The following will explain how the renewal process usually works.
Mortgage renewals are one of the most neglected decisions made during the life of a mortgage. Many homeowners stay with their existing mortgage lender because they believe it is too time consuming to shop around for a better rate. Or, they simply think that the offer from their existing bank is the best deal available. Or that it will cost a lot of money to switch to another lender.
Our experience has shown that most banks send out their renewal notices 30 days before your mortgage is set to expire and usually this renewal will be at posted rates or a small discount off posted rates.
Why do they do this? It’s simple. The fact is that each branch acts as a separate profit centre for the lender. They are rewarded and paid based upon the profitability of their overall mortgage portfolio. They know that most homeowners don't want to go through the hassle of shopping around, and possibly having to re-qualify for their mortgage at a different bank. So, they offer you the posted rate and hope that you won’t have the time to compare rates.
At Best Mortgage Victoria we can help can help make the process of switching your mortgage to another lender a easy as possible and now most lenders offer "no cost or low cost switches" with interest rates that are better than those being offered by your existing bank. If you want to see how much you can save by not accepting the banks posted rates look at the example below.
Your mortgage is one of the largest on going financial commitment you have. You owe it to yourself to avoid higher rates —avoid unsuitable products and terms — avoid running out of time to find out what the best option for your mortgage
Even if your mortgage doesn't come up for renewal any time soon, there's still a very good reason to speak to a Best Mortgages Vancouver mortgage specialist.
As rates and market conditions change, your current mortgage may be costing you more than it should. It's possible that we can find another option for you that are so attractive it makes breaking out of your current mortgage cost-effective. But the only way to know for sure is to sit down with your Best Mortgages Vancouver mortgage specialist and discuss your current situation and future goals.
Why should you contact Best Mortgage
At Best Mortgage
To have an experienced a mortgage planner prepare a free analysis for you, click here.
A mortgage planner can usually negotiate a discount of between 1 and 1.5% below the banks posted rates which can mean big savings for you!
Imagine saving over $108 per month, reducing your mortgage by an additional $2,500 and saving over $9,000 in interest charges in 5 short years!
Here's an example for you to consider with a discount off posted rates of 1.25%:
Bank Renewal Mortgage Mortgage Broker Negotiated Mortgage
Mortgage Principle: $150,000 Mortgage Principle: $150,000
Rate 5 yr Term: 6 % Rate 5 yr Term: 4.75%
Monthly Payment: $959.71 Monthly Payment: $851.18
Savings Monthly: $0 / month Savings Monthly: $108.53
Mortgage Principle at Term end: $134,755 Mortgage Principle at Term end: $132,234
Savings on Principle: $0 Savings on Principle: $2,521
Interest paid during the term: $42,337.60 Interest paid during the term: $33,304.85
Interest saved: $0 Interest saved: $9,032.75