Renew or Refinance. The first rate is not always the best!
by Denis Doucet
What you’ll learn
- Renegotiate the mortgage terms at renewal
- Consider the possible changes to your lifestyle you could afford during your renewal period
- Take advantage of your renewal for debt consolidation
The laws of least effort
Banks and other lending institutions tend to take you for granted when your mortgage comes due for renewal. That’s because 80% of their clients simply agree to roll-over the terms and conditions of their previous mortgage, without ever negotiating a better interest rate.
We understand that you may not have the time, nor want to make the effort to obtain a more competitive mortgage… which is all the more reason to take a minute to give your broker a call. The 60 seconds it takes to reach out could save you tens of thousands of dollars over your next mortgage term.
Your broker has access to multitude of competitive lenders, options, mortgage types and terms to help you re-evaluate your present mortgage needs. Unlike most lenders who will have little of no contact with you after your initial mortgage, we in a great position to provide you the best possible mortgage, at the most competitive rate in the marketplace. You deserve it!
“Want to avoid the hassle of going back and forth with a lender to secure a mortgage? Then enlist the help of a broker. First-time home buyers often consult a broker, but nothing stops you from using a broker when your mortgage comes up for renewal. The Bank of Canada found that those who do… usually enjoy a better interest rate.” – Stéphanie Grammond, La Presse, April 21, 2014.
It’s time to re-evaluate your mortgage needs!
When your mortgage comes up for renewal, you have the opportunity to assess your current situation and whether your income, financial responsibilities or goals have changed since your last mortgage. Many factors may affect your mortgage strategy in selecting a different mortgage type, term and amortization. For example:
- Your life stage or lifestyle changes allow you to consider a variable rate instead of a fixed rate;
- Your thinking of moving in the coming years;
- You have a new job and are making more money;
- You are thinking of starting a family or are looking to have more children;
- Your partner or spouse is now helping you pay off your mortgage.
Take advantage of the leverage effect
Renewal time is also an excellent opportunity to consolidate your debt. Securing a lower and more competitive rate, in turn, saves you money… money you can then leverage to help you reach many other goals in life. For example, a home renovation or finally taking that dream vacation.
- A mortgage broker can obtain a better rate for you during your renewal period
- The ending of your mortgage term allows you to align your lending strategy to your current means and lifestyle
- Consolidating your debts at the renewal period allows for an advantageous rate