By omitting proper consideration at the time of renewal, Canadian citizens lose thousands of extra dollars every year. Nearly 60% of borrowers simply sign and send back their renewal that is first offered to them by their lender. Shopping for a more favorable rate, may save thousands of dollars throughout the mortgage term.
Homeowners should never accept the first rate offer from their existing lender. Without any negotiation, simply signing up for the market rate on a renewal is unnecessarily costing the homeowner a lot of money on their mortgage.
Generally, it is a good idea to start shopping for a new term between four and six months before your current mortgage expires. Many lenders send out your renewal letter very close to the time that your term expires. This does not give you ample time to arrange for a mortgage term through a different lender. This means that you need to be tracking your own mortgage term timeframe and know when it is time to start shopping for a good mortgage renewal rate.
Before you ever hear from your lender about renewing your mortgage term, have a licensed mortgage professional shop around for you. You will be amazed at what they can accomplish on your behalf!
Your mortgage is one of your most significant expenses. For this reason, it is imperative to find the best interest rates and mortgage terms you possibly can. By shopping around at renewal time, you can save substantial amounts of money over the life of your mortgage loan. Don’t be one of the 60% who just sign their renewal letter and sends it back. Use the services of a licensed Dominion Lending Centres mortgage professional to ensure the lenders compete for your business.