Did you know that when your mortgage comes up for renewal, you can do anything you want with it – from switching lenders, taking out equity, or re-negotiating your rate! Many people assume they need to resign with the same lender at whatever rate is offered to avoid penalties. Watch this short video to find out what your options are.
Here is the Transcript of the Video:
BRENDAN – Hey there, this is Brendan Stoneman with RE/MAX Kelowna. I’m sitting down with Jewels Ferris, mortgage broker with Canadian Mortgage Experts. So, as people have lived in their home for a while, their mortgage term comes up for renewal. What happens at that point?
JEWELS – Yes, I think it’s a really important point actually. Most people assume that they have to stay with their current lender. Their current lender sends them a renewal letter in the mail and they just sign away and renew their mortgage. And what people may not understand is that their mortgage is entirely open to them at that time. They can do anything they want with it without penalty and often times transferring to a new lender is entirely free for them. When a lender sends you a renewal agreement, most of the time they’re offering you a rate that’s higher than what the lowest rates available are at that time, and hoping that you probably will just sign and take it.
BRENDAN – Yeah and I’m sure most people just get the letter and think they have to sign it and send it back and that’s it. So nice to know there’s some options there. So, what happens if they maybe want to refinance or take up some equity? You’ve got some different options at that point.
JEWELS – Yeah exactly, do you wanna make changes to your mortgage, like refinancing or whatnot? That’s a great time to do it and I think just for clients, always know that there are options out there. So at renewal, call a mortgage broker and see what else he can do for you.
BRENDAN – That’s one thing I like about working with you guys is I know that once the renewal rolls around, people can reach out to you, you can talk to them about it, you’ll give them some advice, which might mean staying with the existing lender they have or maybe there’s some better options available to save that client some money.
JEWELS – Totally, and the thing is that we will always give the very best advice to you – maybe the best advice is to move somewhere else for a lower rate. Maybe the best advice is to take exactly what your lender has offered you, or what we can do for you is we can help you negotiate with your current lender to get that rate down. So lots of options there.
BRENDAN – Good advice.
JEWELS – Yeah.
For all your Mortgage needs, you can reach out to Jewels at:
Jewels Ferris – CME