Renewal letters from the big banks will typically read in a very unassuming manner; the bank is simply looking to help you lock in and make your mortgage renewal as simple as possible.
However, it isn’t that simple
Click this link to view a mortgage renewal letter received by a MonsterMortgage.ca client, the letter boasts a ‘limited-time’ offer of a 5 year fixed mortgage for 3.19% and a ‘special offer’ 2 year fixed mortgage at 2.59%
Don’t fall for these scare tactics
Your bank will make every effort possible to try and lock you in to a mortgage renewal up to six months before your renewal date – they do this because they don’t want you to do your homework.
In your renewal letter you’ll see the ‘limited-time’ or ‘special offers’ from your bank. While these offers may initially seem tantalizing, they really are anything but special; in fact, these deals are typically among the worst available to you. The bank hopes to appeal to your comfort zone; the bank hopes that you’re uneducated when it comes to mortgages and that you won’t ask for something better.
Demand more from your mortgage
In the mortgage renewal letter above, you’ll see a couple of ‘limited-time’ offers that are anything but special in the marketplace. In fact, through MonsterMortgage.ca, you can gain access to these same Scotiabank products at an even lower rate.
While your bank will continually tell you that they value you greatly as a customer and that they’re dedicated to helping you become mortgage-free as fast as possible, then why won’t they offer you their best mortgage products up front? Because of one thing – profits.
What to do?
If you refrain from renewing early with your big bank, then you’re taking the first step towards getting mortgage-free as quickly as possible. Four months prior to your renewal date, you’ll be able to shop your mortgage around the marketplace in order to get the mortgage that best suits your needs.
Remember – don’t fall for the scare tactics when it comes to your mortgage; get a mortgage that puts more money in your pocket, not your bank’s