Facts:
Major banks are currently renewing 80 to 90% of the mortgages they hold and of that 80 to 90% they are renewing the majority at posted rates. Paying posted rates costs over $18,000 in additional interest in just 5 years on a $250,000 mortgage amortized over 25 years. Over $250 billion in mortgages will be renewed this year! Is it any wonder why the banks are posting such impressive profits?
Fiction:
Banks really care about the rate you pay at mortgage renewal time.
Fact:
Here are the policies the 6 major banks follow at renewal time [source: GoMax Solutions]:
BMO: Renewal letters are sent out at posted rates. If the client (that's you) signs you will get the posted rate. If you go to the branch you can negotiate.
CIBC: Renewal letters are sent out at posted rates. If the client (that's you) signs you will get the posted rate. If you go to the branch you can negotiate.
HSBC: Renewal letters are sent out at posted rates.
Royal Bank: Renewal letters are sent out and the rate offered is the same as what was offered on the previous term.
Scotia Bank: Renewal letters are sent out at posted rates. Client (that's you) is required to go to the branch to sign, at which point the bank may offer a discount, if the client asks.
TD Canada Trust: Renewal letters are sent out and the rate offered is the same as what was offered on the previous term.
Fact: Don't just sign your mortgage renewal! Talk to an Accredited Mortgage Professional and Mortgage Broker like me. Our job is to search the market for the right product at the right price that suits your needs. And best of all, you don't pay anything for this service. Mortgage Professionals and Brokers are compensated by the lender not the client.
Email me for your free copy of
10 Things NOT To Do at Mortgage Renewal time. Let's
start the conversation today!
