Time to renew your mortgage?

You want to renew/switch your mortgage to another lender who will most often give you a better rate. Most lenders now offer "no cost or low cost switches" and it's a smart way to reduce your interest costs. We can take care of all the details for you and help you negotiate with your existing lender or find a new lender who will give you very competitive rates.

What is mortgage renewal?

Mortgages in Canada typically have a term of 6 months to 5 years (there are 10 year terms available, however they are not as widely used as the 5 year term mortgage). Once the term ends, a mortgage must be renewed at a new interest rate or in some cases, paid off . Borrowers have two choices; remain with the current lender or find a new lender. Why bother looking for a new mortgage lender you might ask? Simple, a new lender may offer you better terms like lower interest rates and therefore lower monthly payments.

To understand more about why it may make sense to renew your mortgage with a new lender, let’s take a look at how things look from viewpoint of the lender.

First, the lender sends out a renewal letter before the end of the term. The letter details the amount that is up for renewal, and offers a new interest rate. The new interest rate is rarely the best interest rate on the market, because statistically most Canadians simply sign the letter and opt in for whatever rate is offered. It's the most convenient thing to do. What most people do not realize, is that lenders are perfectly aware of the fact that the majority simply sign renewal letters and send them back. Why offer the lowest possible interest rates, when you can offer average, or above average rates, make more money, and still get the renewals you desire?

This is why it makes so much sense to compare other offers when it is time to renew your mortgage. You have an opportunity to see what other offers are out there and get the best mortgage rates possible! Getting the lowest mortgage rate is definitely worth a few minutes of your time. You’re definitely at the right place, as Ratesheet.ca has the tools to help you save!