Renewals

You could be saving thousands in interest!

Congratulations, your mortgage is coming up for renewal! Now that your renewal is coming up, you can shop around with your current bank and several other options to see which lender will offer the best product and rate for the next term you choose for your mortgage. Your mortgage will now be “open”, so there is no/next to minimal cost to leave the current lender. It’s time to look around and see if you can save money, in a number of ways. 

First you need to take a look at your financial situation. Do you need money for anything? Do you require money for a debt consolidation, renovation, for your business, maybe to invest? Now is a great time to re-evaluate whether the current lender and product are still the right fit for you. It’s likely a long time has passed since you first took this mortgage and what may have been the right fit for you at the time may no longer be right any more.

If you don’t need extra money on your mortgage, you will want to see what your current lender’s best rates are on the renewal and let us know. To renew the mortgage with your existing lender the paperwork is minimal (you just need to sign a piece of paper and you’re done), but to go to another lender you will be required to apply just like you did the first time you obtained the mortgage. We need to make sure it is worth your time to move your mortgage to another lender. 

For instance, if you will only save 0.1% per year on a $100,000 mortgage, this would be a $500 savings over 5 years. On the other hand, if you can save 0.4% on a $500,000 mortgage, looking around and shopping the mortgage around could save you $10,000 over a new 5-year term!

If you are doing a straight transfer to another lender, legal costs of moving to another lender can often be eaten by the new lender, depending on how your current lender has registered your mortgage on title. We can determine what costs would be involved to move the mortgage over to another lender. If you are going to do a refinance, generally an appraisal (~$350) and legal fees (~$1,000) will apply.

Make sure you contact us regarding your renewal as a 5-minute conversation could save you $5,000!