20 May

General

Posted by: Tracy Price

Just a few observations as former and new clients call who are up for renewal this year.  Some institutions are being a little deceptive.   Homeowners are getting notified by mail stating they must sign their renewal letter because their mortgage has matured.  It is usually a drop dead date of two weeks.  But when you look at the actual mortgage statement the mortgage matures much later. Don’t be rushed into signing your mortgage renewal. 

Ideally, the best time to start looking at your mortgage is about 6 months before maturity.    Do yourself a favour and make an appointment with us to discuss your options.  Renewals offered by your current institution will always be higher than what we can get for you.  And lenders bank on you simply signing it back so you pay them higher interest.

 Often simply renewing does not make sense especially if you are carrying high cost debt.  Mortgages are not simple anymore and banks and mortgage lenders are putting new language in some commitments so it is difficult to get out of them ever or you pay dearly if you happen to sell during the term.  We have had homeowners sign for no frills mortgage which has an attractive low rate but comes with punitive penalties.

 If you are retiring in the next few years you definitely should being having a discussion with us.  Remember if you are carrying a mortgage into retirement there are options for long term mortgages with 30 to 35 year amortizations, so you still have a life beyond your mortgage obligation.

As mortgage brokers we deal with 47 different lenders including the major bank, credit union and mortgage lenders.  Because we are high volume mortgage producers, we are offered the best rates and terms in Canada.  But besides that we offer great advice, the advice we give our own children.  

If in the end, you really just want to switch your mortgage to a new lender, we will organize that for you at no cost.

Mortgages are all we do and we are very good at it.