Mortgage Renewals – Love Your Mortgage as Much as You Love Your Home
Have you heard about the new holiday that you get to celebrate with your family? This special celebration typically does not occur every year and often is only celebrated every three, five or even ten years. If the term of your mortgage is almost coming to an end, the John Antle team would like to formally wish you an early, “Happy Mortgage Renewal Day!”
Wait, you haven’t heard about this holiday? When you mortgage term is coming to an end, it is time to rejoice, as you have the opportunity to potentially save thousands of dollars! Sounds better than most Christmas presents doesn’t it?
How Can A Mortgage Renewal Save Me Thousands?
One of the biggest mistakes the average homeowner will make occurs when their current mortgage term is expiring.
Perhaps when they first received their mortgage, they did all their homework, maybe worked with an excellent mortgage broker, and found the absolute best deal on the market. Let’s say this deal was provided through The Bank of XYZ. The mortgage with XYZ provided excellent interest rates, non-restrictive terms, and great service. As a homeowner, you could not be happier with The Bank of XYZ, and at the end of your term when the bank sends you a renewal form, you sign it and send it back to continue this fantastic relationship…right?
Wrong. This is exactly how many Canadians shell out thousands of extra dollars on their mortgages.
Don’t Blindly Accept a Renewal Offer
The Bank of XYZ loves having your business, but they are also a company with hungry shareholders, and they need to make every penny from you that they can. When they send a homeowner a renewal letter, they will remind you of all the fantastic times you have had together; the great service, the savings, and all the warm fuzzy feelings you shared. They will then likely give you a “generous offer” which will be a moderate discount over the “posted rates”. So all you have to do is sign their letter and you are locked in for another term with XYZ. Easy enough right? The only problem is, this new offer is very likely no longer the best deal available on the market. Your lovable bank has just lost you thousands of dollars in potential savings you could have realized with another company.
Save and Celebrate with a New Mortgage
Now that you are aware that your renewal offer may not be the best fit for you and your family, you are much more prepared than the average Canadian homeowner. In a recent survey, Manulife found that almost two out of every three Canadians blindly accepted their banks new offer without shopping around the market to see if a better deal was to be had. Follow these four steps to take control of your new mortgage and your financial well being.
Don’t wait until your term has ended
Go and pull out your current mortgage agreement right now and find the exact date that it expires. We will wait until you have retrieved it.
Got it? Ok good, now take out your phone or calendar and set yourself a reminder two months before that date. This is when you will start the process of renewing your mortgage. By being proactive you will be able to do your research and book the necessary meetings with your mortgage broker and current lender far in advance. By doing so, you will be well educated when negotiating and will be doing so in an unstressed state, where most homeowners are trying to squeak in an extra hour in their busy lives to think about this massive financial decision.
Most individuals believe that their bank will give them the best deal possible because they have dealt with the institution for years and have been “loyal”. In 2011, the Bank of Canada discovered that being loyal had little to no effect on obtaining a good deal. More often than not, the best deal can be found by choosing a different financial institution who will offer attractive incentives to bring you on as a new customer.
Get a Teammate
The Bank of Canada survey discovered that partnering up with a broker was one of the best ways to find the lowest rates on the market. A broker is a deal finding machine, searching the entire market to obtain various quotes from a wide range of financial institutions. If you didn’t team up with a broker for your first mortgage, you may have paid thousands of extra dollars due to a higher interest rate. The John Antle Team is here for you if you want to supercharge your mortgage renewal process. We are the most recognized and trusted mortgage broker in Kelowna and absolutely love saving our clients money.
Be Vigilant with your Mortgage Terms
Even though a bank may offer an ultra low interest rate, it still may not be the best deal available. It is important to thoroughly analyze and understand the terms that come with a mortgage and ensure that you have the ability to pay down extra if you wish. You will also want to make sure that any fees or possible penalties are clearly defined should you have to break your term early.
Your mortgage is one of the biggest expenses that you family has to deal with on a month to month basis. You owe it to yourself and to the ones that you love to fight for the best deal available on market today. As the consumer, you have the power to shop around and negotiate, which could translate into thousands of dollars saved. If you want to know where to start, or want more information on renewing your mortgage, our doors are open at John Antle Mortgages. Go beyond the bank and discover how to save your hard earned dollars when renewing.
JOHN ANTLE MORTGAGES – KELOWNA’S MORTGAGE SPECIALIST
We specialise in offering mortgage solutions that go above and ‘beyond the bank’. This means we are able to provide flexible solutions at great rates, often better than what traditional banks have to offer. Working with a mortgage broker can open up your options, allow for potentially greater solutions for your situation. We work with a variety clients including first-time buyers, those looking to transition from renting to owning or renewing a mortgage, self-employed business people, as well as investors in rental and/or vacation properties.
[…] You have been patiently waiting for years, envisioning your beautiful dream home that is nestled in the Okanagan Valley. After years of renting, or living in a home that has not lived up to your standards, it’s time to realize your aspirations and invest in the home of your dreams… Read More > […]Pingback by Dream Home in Kelowna: What are Your Mortgage Options? – Okanagan Real Estate Blog on August 15, 2017 at 10:14 am