Saving Money on Mortgage Renewal
Mortgage Renewal sounds easy - all it takes is signing the renewal letter from your current lender, right? Wrong. Over 70% of home owners do that, and the usual result is a higher rate and not a best mortgage they need. When you receive the form, don't simply sign it without knowing all your options.
Here's a simple example. Consider an typical mortgage of $250,000 with a 25-year amortization and a 5-year term. Upon the term expiration, your bank offers a 5% renewal rate while we could get you 4.5% with another lender. The price of this missing opportunity over the next five years would be $6000 in interest! SIX THOUSAND! An all inclusive week-long vacation package to Varadero, Cuba is around $1,000 per person - a trip you and someone special could take three times if you were to refinance on better terms.
Now, if you make it a habit, you can loose a total of $37,000 dollars over 25 years. That is equivalent to $50,000 of taxable income. For many of us, that's at list a year of working for free.
So, before your mortgage term is over, please give us a call We will discuss your interest rate options, and can arrange a rate hold for you. We will also discuss which mortgage product and options are best for you, and help you with a customized mortgage strategy.
By the time your mortgage comes up for renewal, you most likely will be in a different financial position than when you first obtained the loan. As our financial and life circumstances change, so does the mortgage product that is best for our needs and goals. For example, you may wish to access your home equity to consolidate other debts, or perhaps pay for post-secondary education. Think of your mortgage renewal as a valuable opportunity. An opportunity to get not only a competitive interest rate, but also a mortgage product that better fits your current needs. Or an opportunity to spend time with your loved ones watching the Varadero sunset together.
Save Money on Mortgage Renewal
