Now remember how enthusiastic you were when that anxiety faded away after your approval! Well, that same anxiety is what your bank is counting on come renewal time. In order to avoid the hassle and effort involved with their mortgage, many homeowners decide to sign the renewal offer from their current lender. After all, signing on the dotted line and sending that letter back is about as easy as it gets; however, to paraphrase Teddy Roosevelt, often times that which comes easy isn’t worth having.
MonsterMortgage.ca has covered this topic in detail before; however, as Spring is just around the corner, it is a message worth reiterating as many mortgages start to come up for renewal.
Writing mortgages costs money for lenders & banks – mortgages require administrative teams to coordinate, legal work to arrange a proper mortgage contract, underwriting to accurately assess risk and compensation to the mortgage brokerage. Needless to say, there is a strong incentive for lenders to get homeowners to sign that renewal agreement the second time around.
Remember that anxiety we referenced earlier? Lenders are also counting on you to avoid the effort – mentally and physically – in switching lenders. Your current lender knows this and offers you a higher rate than what you might get elsewhere in the market – in the hopes that you’ll sign and everyone can move on. Talk about a “Win-Win” situation right?
Often times when MonsterMortgage.ca clients hear this information for the first time, many become a bit agitated. After all, you’ve been diligently paying off your mortgage each month, never missing a payment and sometimes even going over and above your monthly obligations by increasing your monthly payments. Now, you’ve heard that your bank is offering their best rates to new customers only? Unfortunately, business is business, even when it comes to your home. Fortunately for homeowners, you have the option to research the market, make calls to different banks, or alternatively, you could put a Monster on your side…
If you’re six months or fewer away from your mortgage maturity date, forgo the legwork of research and take the time to speak to a Mortgage Expert who can show you the benefits of switching (or staying) come renewal time. A well-qualified mortgage broker can assess your options and put into hard numbers the thousands of dollars you could save on your renewal.
Leaving upon your renewal will typically cost you a grand total of zero! If you are renewing in the next six months, fill out the contact form at the top of the page and chat with MonsterMortgage.ca today!BACK TO BLOG FEED