Mortgage Renewal

Mortgage renewals are one of the most neglected decisions made during the life of a mortgage. Many homeowners stay with their existing mortgage lender because they believe it is too time consuming to shop around for a better rate. Or, they simply think that the offer from their existing bank is the best deal available. This is not correct.

At renewal time banks will mail their renewal notice to their clients with the posted bank rates and expect that the client will simply sign the form and renew their mortgage. Did you know that 70% of renewing clients simply sign that renewal form? For those that sign that form it can be seen how much money they throw away in the table below.

If the client decides to negotiate their rate, the bank will make them grovel to get a better rate and the client may get a discount of anywhere between .25% and 1.0% off the bank rates, the better discounts only being given to clients that have bank accounts and investments with the bank.

Keep in mind that the bank branch’s profit is in what they do not give you.

The answer to getting the best rate – see a qualified Mortgage Broker with an AMP credential.

We are able to gain competing offers on your mortgage business and we usually return with a rate that is 1.0% to 1.75% better than your Bank would offer you.  This can translate into incredible savings!  (See below with only a 1.30% savings)

If your mortgage is up for renewal, and you are looking for the best rate available, we will do your mortgage shopping for you. We will find you a mortgage at the best rate currently being quoted in the market for the term of your choice and on the conditions you want. Provided you are a “qualified borrower” with respect to the amount you want to borrow, there is no fee payable to us for this service.

Here's an example for you to consider:

Bank Renewal Mortgage	The Mortgage Centre Negotiated Mortgage
Mortgage Principle:   $150,000	Mortgage Principle:   $150,000
Rate for 5 yr Term:   5.79%	Rate for 5 yr Term:  4.49%
Amortization: 25 years	Amortization: 25 years
Monthly Payment:   $941.07	Monthly Payment:   $829.38
Savings Monthly:   $0 / month	Savings Monthly:   $111.69
Mortgage Owing at end of term:   $134,351	Mortgage Owing at end of term:   $131,672
Savings on Principle:   $0	Savings on Principle:   $2,679

Your Savings over a 5 year term is $9,380.40.       

The above savings are calculated as follows from the table above: Monthly savings on payments over the 5 years is $111.69 x 60 months (5 years) = 6,701.40 plus the savings on the difference on the ending principle. $2679.00 + $6,701.40 = $9,380.40.