Mortgage Renewals
Is
Your Mortgage Up For Renewal This Month?
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Mortgage Renewal is a great time for individuals to
take advantage of a new rate or product to
suit their changing needs. Unfortunately
Mortgage Renewals are one of the most neglected
decisions made by Canadians.
Watch our
Mortgage Renewal video explaining everything you need to know
about renewing a mortgage in Canada. We
will walk you through the entire process
from start to finish. We are here to make
sure you get the best rate and product
possible
on your upcoming
Mortgage Renewal!
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The Process
When your mortgage term is coming to a
close, most banks will send a
Mortgage Renewal
notice in the mail
approximately one to two months prior to the
end of the term. On this notice, banks will
always offer you a high rate and assume that
you will sign on with them for another term.
They typically only offer you their posted
rate with very little or no discount.
CMHC stats show that over 60% of all
Canadians accept the first rate their bank
offers. They will stay with their existing
mortgage lender because they believe it is
too time consuming to shop around for a
better rate. Or, they may think the offer
from their existing bank is the best deal
available. This is not true!
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Big Bank Policy
Traditional big bank
policy is to at best discount the posted
rate by 0.10 to 0.50 percent. Our experience
has shown that on average, most banks offer
their renewing clients a discount of .25%
off their advertised rates. If the client
does manage to negotiate a better rate, it’s
usually a maximum ceiling discount of .50%.
This is the maximum the branch allows the
mortgage representative to discount any
mortgage product. Some special cases are
given for clients who have many investments
held within the bank. For the most
part, however, there are no exceptions made.
When a mortgage comes up
for renewal many people overlook three
significant opportunities to save money.
1.
They wait for their bank to notify them that
their mortgage has matured. Therefore
they are pushed to make a fast decision and
accept the banks first offer. If you find
that you waited until the last minute, you
can actually ask your bank to move your
mortgage to an open mortgage so you have
time to decide on the best product.
2.
They don’t negotiate a discounted rate.
As mentioned, the bank will always start by
offering a higher rate. You can always do
better than the first offer no matter who
the lender is.
3.
They
don’t research the market to see what other
lenders are offering. The Canadian
mortgage market has become very competitive
with many different products available.
Banks will compete for your business! Talk
to a broker and have them find you the best
rate. Lenders will actually offer lower
rates to a broker, this is because they know
this market is much more competitive.
Not taking advantage of these opportunities
will definitely cost you money.
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Transferring a
Mortgage
A major misconception among homeowners is
that switching your mortgage between lenders
will incur penalties and fees. The truth is,
it is absolutely FREE! The big banks know that most
homeowners don't know or understand
transferring a mortgage is
free and they certainly don't want you to
know.
If you simply switch your
mortgage to a new lender, you will not be
subject to any fees or payout penalties if
you are switching at renewal time.
If your mortgage is in the middle of a term,
there may be a penalty to switch. However,
we have found that paying the penalty in
many cases to change institutions to either
get a lower rate or a better mortgage
product can save a homeowner thousands of
dollars.
Once you are qualified,
your current mortgage balance and the
remaining amortization period are
transferred to your new lender with your new
interest rate in place.
You should start
thinking about switching your mortgage
between 90 and 120 days before your mortgage
renewal date. This not only gives you ample
time to complete the process, but also
protects you against any interest rate
fluctuations that may occur prior to your
renewal. If you get pre-approved with a new
lender 4 months before renewal and interest
rates start to rise, you will always be
guaranteed the lower rate.
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How We Can Help
At SaskHomeBuyer.com our
brokers work for you, not the bank! Our
brokers offer you the expertise and
resources so you can take advantage of the
competitive mortgage market. We deal with
over 75 lenders across Canada to find you the best possible
mortgage to fit your needs. We are an
independent company with the sole purpose of
finding you the best mortgage rate and
product in Canada. Our brokers
will save you time
and money by negotiating a better rate on
your behalf at no cost to you! That's
right, our services are absolutely FREE!
Our
Mortgage Renewal
rates
start at 1.00% to 1.75% below the banks
posted rates! This is just the tip of the
iceberg.
The true SaskHomeBuyer.com
advantage is service! We don't stop at the
application. We assist you in gathering all
information that the lender requires. We
strive to make your
Mortgage Renewal a
smooth transition. Unlike the big banks, we
work hard to earn your business and to keep
you coming back! We guarantee to offer you
the best discounted rate offered by any of
our many lenders without having to play the
“big bank” negotiation game. We guarantee
you the best rate on the first offer. We
will take care of you before and after each
of your
Mortgage Renewals
and throughout the life of your mortgage to
ensure you always have the best product
possible!
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Getting
Pre-Approved for a Mortgage Renewal
The next
step step in the
Mortgage Renewal process is
to obtain a pre-approval from a bank or lender. A
pre-approval is simply a rate hold,
typically for 120 days. This allows you to
get all your financing setup prior to
the end of your current mortgage term. A mortgage broker will help you
acquire the pre-approval so you are
confident you have the best product
possible.
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Get Pre-Approved For
Your Upcoming Mortgage Renewal...Its
Quick And Easy!
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Questions
- Contact Us
Mortgage Renewal time can create a lot of
questions for a home owner. Although we have
provided a lot of information for you on our
website, sometimes it is best to talk
directly with a professional to help answer
any questions you might have. At
SaskHomeBuyer.com, we are always here to
help! Our services are FREE and we will make
certain you are taken care of every step of
the way!
If you have any questions, please feel free
to contact Miles Zimbaluk anytime! Miles
helps clients in every province from coast
to coast and is
available at the numbers below, days,
evenings, and weekends!
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Miles
Zimbaluk,
Mortgage Broker
TMG
The Mortgage Group
Regina,
Saskatchewan
Phone:
306-584-9280
Toll
Free: 866-504-2050
Cell:
306-533-3039
Fax:
866-397-9189
Email:
miles@saskhomebuyer.com
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