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Is your mortgage coming up for renewal?

November 25, 2014

When you first sign your mortgage contract, you are establishing the rate and conditions under which you will be obligated to pay to your lender for the term of your contract. What happens when this term is up and there is still a balance owing on your mortgage?

If your current mortgage is with a financial institution that falls under federal regulations (such as a bank), the lender MUST provide you with a renewal statement at least 21 days before the end of the existing term. If the lender does not intend to renew your mortgage, it must notify you 21 days prior to the end of your term as well. You can expect that your mortgage holder will begin contacting you at up to 6 months before your renewal date.

Your lender may offer “special” rates or incentives if you sign your renewal early, in an effort to deter you from shopping for the best renewal rate and terms. An astonishing amount of Canadians simply sign their renewals and don’t think about it again, a hasty move that could cost them thousands.

At Your Island Mortgage Team, we believe that your mortgage renewal is not a formality to endure, but rather an opportunity to revisit your (likely) biggest investment and ensure that it is working for you!

It may save some time to simply sign on the dotted line - but it will very likely save you money to have a professional at Your Island Mortgage Team review your mortgage before your renewal date to ensure that your terms and conditions are meeting your needs, and you are paying the lowest rate. We can hold a renewal rate for up to 120 days, and can tailor the renewal terms to you.  Why try to fit you into the box, when we can build the box to fit you?

Here are just a few reasons why you shouldn’t “sign on the line and carry on”:

  • Lenders rarely offer their best rates at renewal. They count on customers simply signing the renewal letter, without question, and carry on. That’s leaving a lot of money on the table!
  • The mortgage lending market is very competitive! There are dozens of lenders available to you through a mortgage professional that want your business. They offer great rates, plus flexible and innovative products that your current lender may not have available.
  • Your situation may have changed. Life happens! We will review your finances with you and make sure that your mortgage works for you, saving you money and headaches for years to come!
  • The mortgage market has changed. Many banks are trending toward collateral charge mortgages, which can be confusing and have significant effects on your equity. We will explain any questions you may have so that you understand how your mortgage works and the terms and conditions you are signing up for!

The best reason is that our services are free to you, the borrower*. Our goal is to save you money and ensure that your mortgage is working for you! Call our office and speak with one of our mortgage professionals today.

Office 250-898-8821 or Toll Free 1-866-898-8821

When you think Mortgage – think Your Island Mortgage Team.

*OAC, E&OE. Some exceptions apply; all fees are discussed up front, if applicable.

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