When it comes time for you to renew your mortgage, especially with a Bank, you get a phone call very early to alert you your term will be ending soon. Bank’s love to do this as they typically make more money off of renewals than first time set up mortgages. This is because they have already retained you as a client and any referral fees have already been paid. Therefore the funds they make off of renewing the mortgage goes strictly into their pocket. Furthermore, because they are simply asking you to renew at the current rate, this does not give you a chance to see if you are getting the best rate out there. Based on these red flags, it is better to shop around for your mortgage, and who better than a mortgage broker to find you the lowest rate with the best terms!
Based on a survey done by CAAMP [Canadian Association of Accredited Mortgage Professionals] 4 out of 10 individuals did not bother negotiating their renewal rate. Further to this, only 56% individuals bothered to negotiate their renewal rate. Also, keep in mind, just because they negotiated their rate, does not mean they received a lower rate than their banks current rates. A survey conducted by The Bank of Canada proves this to be true as they found that individuals who do not negotiate or shop around for their rates pay more than double those who shop and compare. This is why you cannot leave ‘your best rate deal’ strictly in the hands of your lender! You should always contact your mortgage broker for a new mortgage, refinance, or renewal when you want to ensure you are getting the best rate out there. Contact Robert Clancy today to learn how!