Rogers vs Bell Is Also A Mortgage Renewal Lesson! by Caryn Negin, Mortgage Broker, The Mortgage Coach

How many times have you looked into your contract with Rogers or Bell to see if you are getting the best price on your services? How many times have you moved providers to save money? I think I can safely say that anyone reading this, has called their provider at least once to get a better deal.  Now I ask you, on the biggest debt that you likely have, "your home", how many times have you simply signed the mortgage renewal letter you received in the mail?  Well, you are not alone. Did you know that 70% of borrowers, (yes, the Banks have done their research), who currently hold a mortgage just signed that renewal letter and most of the time leave anywhere between 20 to 40 basis points (0.20% – 0.40%) on the table? Yes - 20 to 40 basis points!

When looking at renewing your mortgage, with your existing lender, you should always examine if renewing with that lender is your best option or would it be better to consider switching to a new lender.   

A Mortgage Broker gives you a valuable second opinion.

While your current mortgage lender claims to have your best interests at heart, getting a second opinion, on your financial situation, is to your benefit. There are likely new options and products available to you that your current lender is forgetting or unable to offer, and you may qualify for an even better rate than you know about! A second opinion, on your own changed financials, could also save you money or highlight some new options that may be better suited to your needs.

I have worked with many Clients over the years that would have simply signed that mortgage maturity letter, with their existing lender, had they not been referred to me.  And, they would have been overpaying by 30 basis points or thousands of dollars during the next 5 years of their mortgage.  

Keep in mind that having a Mortgage Broker review your renewal offer does not always mean you need to leave your current financial institution.  But if you do decide to leave, the best part is that if you are leaving one financial institution for another and not changing the mortgage amount then, there is no cost to you to move it.   

How will you know if you are getting the best rate for your scenario?  Make sure you have a discussion with your Mortgage Broker before (potentially) burning away thousands of dollars.

In summary, there are a couple of simple rules to follow if you, a friend, a family member or colleague are renewing your mortgage this year.

1. DO NOT just simply sign the renewal letter that comes in the mail.
2. INVESTIGATE your options.

Caryn Negin is a Mortgage Broker with The Mortgage Coach.  She is an expert in mortgage lending for over 15 years and has works with both at banks and alternative lenders on behalf of her clients.  She moved over to the Broker world when she saw that the only way she could truly help all her clients was for them to have as many options as possible.   Caryn can be reached at 416.230.2052 or Caryn@MortgageGenius.ca  Please feel free to drop her a line with any questions.  (www.CarynNegin.ca)