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?
Rather than signing the first renewal document that comes into your hands, it’s very important to talk to an expert and determine if renewing or refinancing your mortgage is the best option. With the help of Lakeland Mortgage, you’ll get the information you need to make the best decision about your mortgage renewal in Edmonton.
Your mortgage renewal date can be a time for a fresh evaluation of your mortgage rates. It’s a time when you can get out of a deal that isn’t advantageous to you without paying a penalty. It’s a time to pay attention and make a decision.
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!
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.
If your mortgage broker 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 than 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?
Talk to a Mortgage Broker