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Why Should I Go Through a Mortgage Broker When My Mortgage is Up for Renewal?

A majority of people who receive mortgage renewals in the mail just pick the term and sign the papers without even checking to see if that is the best mortgage rate offered in our current market. Doing this can possibly cost you thousands of dollars and years of payments that you could have otherwise saved! Why give the bank one more dollar of your hard earned money, just to be loyal?

  • If you have a mortgage amount of $300,000 at 3.00% over a 25 year amortization, you would pay approximately $127,000 in interest.
  • If you have a mortgage amount of $300,000 at 2.50% over a 25 year amortization, you would pay approximately $104,000 in interest.

That’s a savings of over $23,000! Also, for taking a higher interest rate, you would end up paying an extra 1 1/2 years in mortgage payments!

Through a mortgage broker/agent we can shop around to find the best rates for you and then you can decide if your bank will match that rate. If not, another bank would be happy to have your business at no cost to transfer your mortgage from its current lender to them.

Shopping for the best rate saves you thousands of dollars, and possibly years of payments off of your mortgage. It is well worth having a broker/agent to shop around for you!

Remember… a mortgage broker doesn’t cost anything to do this for you. It is free for you!

Early Renewal

Sometimes you will get an offer from your bank to renew early – this means that they can offer you a new rate up to six months before your mortgage renews, and then you will have a guaranteed rate when your mortgage comes up for renewal. I notice that early renewals are offered even moreso than when economic hardship approaches – it seems that the banks want to ensure that you are staying with them. In many cases the first offer you receive from the bank isn’t always the best offer.

As soon as you receive a renewal offer from the bank, your first step should always be to call a mortgage broker/agent to review the value of your offer (see if it is a good offer or not). If they can get you a better rate, you can check with your bank to see if they will match. If they don’t, then definitely get the better rate. Over the life of your mortgage, it isn’t worth paying any more interest then you absolutely have to accrue. Every interest difference – even in 10th’s of a percentage – costs you money out of your pocket.

Many people underestimate the importance of your interest rate… “It’s only half a percent in interest,” People think. In reality, it can cost them over $20,000 over the life of your mortgage, depending on your mortgage balance, of course. Or they think, “Wow, 3%… that is low!” not realizing that elsewhere they could have gotten 2.40%, because they didn’t even bother to look. Because it is money you don’t see on a daily basis, but comes out of your bank account without your consideration – and right into the pockets of the bank.

I cannot stress the point enough that this is where you can save yourself thousands of dollars in savings by being vigilant about your interest rate. Bottom line- how much in actual dollars is your loyalty worth to your bank?


Lakeland Mortgage

#6 4428 50th Ave.

Bonnyville, AB  T9N 1B6

Main: 780-826-3544

Toll Free: 1-866-812-3544

Fax: 1-866-285-4221



Monday – Friday:
9:00AM – 5:00PM
Tuesday & Thursday:
Evening appointments available

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