Scott has been a long term client of the Banks and his mortgage was coming up for renewal. He contacted his bank and asked them what the best rate they are prepared to offer? They offered him a rate on a variable mortgage at prime minus .15%.
Scott called Discount Mortgage Canada and asked us what we are prepared to offer him; we quoted him a rate of prime minus .40%. We even encouraged him to go back to his Bank to see if they would match our rate. The Banks did reduce their rate but the best that they would offer was prime minus .25%, so Scott decided to go with our lender.
This is our no nonsense approach to clients, to simply offer them the best we can do right off the top.
Roy, I just wanted to thank you for helping us find a great deal on my mortgage. What I really appreciated was that you were able to offer us your best rate from the start and it didn’t cost us any money to transfer my mortgage.
Thanks again, Scott B-Z
When It's Time To Renew Your Mortgage
In Canada most mortgages that are taken carry a term of about 5 years and at the end of the term these mortgages come up for renewal. If you have made your payments on time the banks will offer you a renewal.
Sometimes the Banks will call you before your mortgage comes up for renewal to offer you an early renewal. However most lenders will wait until 30 days before your mortgage comes due then send you a renewal notice in the mail. You simply have to sign the renewal agreement and you are all set for another 5-year term.
You have to ask yourself ‘is this the best they can offer or are there any better deals out there on the open market?’ Typically, the Banks will never offer you their lowest rate right off the bat as most customers simply renew without trying to negotiate a better deal.
There are times when it is better to stay with your current lender, especially when your situation has changed and you might no longer qualify for a mortgage. On renewal your existing lender will not typically ask for you to requalify as long as you have made all your payments on time. However, for the vast majority of people, this is the time to shop the market to see if you can get a better deal.
Getting the Best Mortgage Renewal Rate
We recommend that you call your existing lender and tell them that you are shopping for the best deal and want to know upfront what they are prepared to offer you. Once you get this information you are now able to shop to see if you can get a better deal.
Give us a call and ask us what we are able to do for you. As a discount brokerage we don’t play games and know that we only have one opportunity to earn your business so we simply give you the best deal right off the bat. If your lender’s offer is better than what we can offer then at least you know that you have a great deal and can feel confident in renewing your mortgage. If, on the other hand, our deal is better you can also feel good that you gave your existing lender the opportunity to earn your business. In the end you must do what is best for you!