"Ah - where did the time go? My bank has mailed me an early renewal offer for my mortgage term..."
But wait! Did you know that accepting that offer without researching other market options is the biggest mistake you can make? If your mortgage is coming up for renewal in the next 12 months - read on.
1. Renewing Your Mortgage before maturity is always good thing – False!
Banks will call six months in advance to secure your business for the next five years to beat out competitors. This way you won't be tempted to change lending institutions at maturity when you find a better offer. The best strategy is to find out what the competition offers and obtain a rate hold.
Researching your options is what I specialize in as a mortgage broker, and I watch the market during the remaining last four months of your term. If you have already renewed early at your bank, then you lose out on this opportunity to obtain a mortgage that is a better deal.
2. Renewal Mail Outs are my best option – No, don't ever sign this!
Banks know that a certain percentage of people will just sign the renewal form that they receive in the mail without further research. However, even a small discount over the next term can put more money into your pocket, instead of the bank's coffers.
3. The Last Second Renewal Offer – Don't fall for the "It's too late now!"
Your bank will contact you a week or two before your renewal date. If you are unprepared, you may agree to whatever they offer you. Never agree! Find out what your best options before you sign anything because it's not too late! You might have to go into a short-term open rate mortgage for a week or two, but it can be very costly to accept this rush offer without doing some homework.
HOW TO AVOID THE ABOVE THREE SITUATIONS:
If you want to save money, you need to be pro-active. Start early, watch the market, check out and compare competitors mortgage products, looking for the difference in the features and flexibility. It’s not just the interest rate that you need to look at, but the restrictions in the contract and how they may apply to you down the road.
I can help you with this. Email me your renewal date at win@winonareinsma.com, and I will get in touch with you six months before your mortgage term renews. We will agree on a personalized strategy taking your goals and finances into consideration and then watch the competitors for the best options. Worse case scenario, if I can't find a better mortgage option, I will negotiate directly with your current bank to ensure you receive their best offer. You have nothing to lose because in most cases my services are FREE.
It's your money, so take control and find out how to keep more of it.
To book a free Credit Assessment and Mortgage Planning Consultation call me
604-882-3643
.
This complimentary service can save you thousand of dollars down the road, and provide you peace of mind.