Special to The Record
We see many clients each year who have received mortgage renewal offers with grossly high interest rates, which would cost them thousands of dollars if signed. Banks are in business to make money. While they often offer special discounts and promotions to new customers, they typically try to charge higher rates on renewal to existing customers. Nice, eh?
That’s why renewal time is a great time to investigate your options and court other lenders. Beyond rates alone, your mortgage renewal is also an opportunity to review your family’s financial goals; you might find that a different mortgage product is better suited to achieving them.
Certainly there are costs associated with the legal work involved in changing lenders. In most cases, however, the new lender will pay those costs on your behalf to do a “straight” switch (i.e. with no significant changes to the mortgage amount or amortization).
Even with a re-finance (where you change the amount borrowed or increase your amortization), there’s at least one option that offers a free appraisal, $500 toward your legal fees and highly competitive rates. This is a great option if you’re looking to consolidate higher interest debt or use your home equity to finance a renovation.
So before you blindly sign your mortgage renewal, take the time to think about your needs and to shop around. Remember, there are a lot of lenders out there willing to woo your business. Take advantage of mortgage renewal time and ensure you’re making the best borrowing decision.
Mackenzie Gartside is a Mortgage Consultant with Select Mortgage. Find today’s rates online at www.comoxmortgages.com or call 250-331-0800.