August 21, 2019
1 Year Closed : 2.69 % |
3 Year Closed : 2.69 %
5 Year Closed : 2.59 %
Your Mortgage is coming due, so what are your options and what do you need to know?
offer you the best rate upfront. Typically banks or lenders will contact
you a few months ahead of time with an offer or renew. It's usually with a higher rate, sometimes no discount at
all, hoping that you’ll simply sign and stay with them. Whether it's boring or not a priority, a high percentage of home owners simply pay a higher rate than they have to. A recent Bank of Canada
study confirms that consumers that use a mortgage broker on renewal save on
average 19 basis points. (2013) Having a mortgage broker do the research and negotiate
on your behalf can make a huge difference. Avoid the bank roll over trap, and contact an experienced licensed mortgage broker for a second opinion. I can advise on what you were offered and tell you how it compares to current rates that are available. I can also lock rates 120 days away, while still getting a lower rate right up to the date.
switch to a new mortgage at no costs. When you first purchased your home, there
were additional fees, including legal and perhaps appraisal fees. When you
switch over your mortgage upon renewal, there are no fees, including legal or
an appraisal (upon OAC). It's simply a straight transfer/switch from one mortgage to another, while locking in a lower rate. (with no new money added) Also, if you already
paid a CMHC, Genworth or insurance premium when you purchased your home, there could be options not to pay it again. Several banks and even other mortgage
representatives, are not aware that you can port your insurance premium from
one mortgage to another and in some cases, from one property to another. That alone can save you thousands of dollars and most do not have access to all 3 insurers to do this.
It could be
an opportunity to consolidate debt, add money for improvements or pay down the balance faster. Renewal can be a great time to determine your needs moving forward as things could have changed. It could be time to consolidate debt into one payment, or perhaps increase your payments and eliminate years off your mortgage. See Refinancing for more information or click here - http://www.ryana.ca/custom3.asp.
Whether you're thinking of moving up or downsizing, refinancing to consolidate debt or renewing, I'm happy to assist and answer questions about breaking your term early, and what options you have. Contact me today!