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Mortgage Renewals in 2024

General Trish Pigott 12 Jun

Canadians are leaving money on the table by not negotiating their mortgage renewal rates.  Why?  Most likely because they do not have a professional representing them.

In the face of higher costs more Canadians are changing their grocery shopping habits, hunting for bargains, and switching to lower-cost brands — yet many are leaving money on the table when it comes to their single largest transaction, their mortgage.

According to a recent survey conducted by Mortgage Professionals Canada, homeowners are doing less haggling at renewal, despite most facing higher interest rates.  The study found that 41% of borrowers accepted the initial rate offered by their lender, up from 37% two years ago. Furthermore, just 8% say they “significantly” negotiated their rate at renewal, down by half since 2021, when 16% haggled aggressively.

Part of our job as your Mortgage Broker is to negotiate those rates on your behalf and there is no cost to you as the home owner.  Generally we will review what your bank is offering you, negotiate with them to ensure you are receiving the best rates in the market and if your lender does not come to the table, then we will arrange a new mortgage for you with a lender that wants your business.

I find it truly unethical that a bank rewards it’s customers for their past years of business by not offering them the best rates available and better yet, rates they are offering new customers.  It’s like they are punishing home owners for being loyal clients.  More often than not, banks are offering higher rates in hopes that you sign on the dotted line without negotiating and everyone just moves on.  Then if you do ask for a better rate, they get you to go find out what the competitors are doing and then “maybe, just maybe” they will match the rate.

Leave the haggling to us, let us shop the market and let us do the leg work to ensure you finding the best rate possible for your next mortgage term.  A bit more on mortgage renewals;

When renewing your mortgage, you have a few different options to consider;

  1. Renewing your current balance and amortization (total time left on your mortgage) with your current lender into what ever rate they are offering you, and not making any changes at all.  This does not require re-qualification in most cases.
  2. Renew with a *new* lender, keeping your current balance and remaining amortization the same, but shopping the mortgage with all lenders for best rates in the market.  This is the same process of a new mortgage and requires re-qualifying.
  3. Refinance (means changing the mortgage amount and/or amortization) at best rates in the market which involves seeing a lawyer or notary. Most commonly done when accessing equity to renovate, consolidate debts or make another large purchase. This process requires re-qualifying.

Renewal Timeline:

  • 6 months before – we update your file with your current employment and financial situation so that once we are within the 4 month timeline to hold rates, we have all accurate information on file to make the process easier
  • 6 months before – we start discussing if there are any potential changes you want to make to your current mortgage as well as your current cash flow
  • 4 months before – we can hold a new rate for you with the best lender and rates in the market. This is important as the rate market is so volatile that there can be drastic differences (nearly 2%) by securing a rate early vs leaving it to the last minute.  Even though we have a rate held for you, we will continue to then monitor all other banks and if rates come down lower than what we have held with any other lender, we will secure that rate as well so you are protected
  • 2 months before your maturity date, we will ask you to obtain or we will request on your behalf, what your current lender is going to offer you so we can compare it to what we have held for you
  • 30 days before your maturity date you should have made your decision with what route to go as it does take time to either switch your current mortgage to the new lender or refinance your mortgage.  Leaving it to the last minute leaves you at risk of missing on out on previous rate holds or having to accept whatever your current lender offers you
  • Reminder: we have room for negotiation with either a new lender or your current in getting the most competitive rate for you
  • If we did NOT arrange your current mortgage and would like our help with your upcoming renewal, please reach out to our office
6 Key benefits of have us handle your mortgage renewal for you:
  1. Full product and lender review across all banks
  2. Expert advice and individual mortgage strategy developed based on your personal situation
  3. Rate negotiation on your behalf
  4. Zero cost for our services
  5. Full VIP service at our office rather than be treated like a number
  6. Accessibility, we are available by phone, text or email 7 days a week

CLICK HERE  to book a call to discuss your upcoming mortgage renewal.  Remember to do this at least 4 months in advance of your mortgage maturity.

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