Typical process for a renewal is you will receive a letter in the mail anywhere from 120 to 30 days prior to your maturity date. The bank will offer you a rate that may be lower than the posted rate but is typically much higher than the current market rate. Most of us will sign the renewal and send it back just to avoid the hassle of more paper work, but is that the best option for your bank account.
A recent study conducted by Bank of Canada showed that mortgage brokers get consumers a lower rate. Higher income earners are less inclined to shop around for better rates and except the renewal from their banks.
Saving 0.25% on your mortgage will earn you savings of $3560. Getting away from inflated repayment penalties can save you anywhere from $10 000 to $20 000.
When your mortgage comes up for a renewal be smart and save. Contact an independent and unbiased professional. Find an experienced mortgage broker to get you the best deal possible so you can expand your pockets and enjoy your savings.
If you have any questions on your mortgage renewal do not hesitate to contact:
Robert Clancy, AMP,
VERICO Safebridge Mortgage Solutions
SAFEBRIDGE Financial Group
Tel: 416 899-1467
Fax: 1866 385-4049