While most Canadians spend a lot of time researching mortgages before their initial purchase, the same is generally not the case when looking at the mortgage renewal letter. Omitting proper consideration at the time of renewal costs Canadians thousands of extra dollars every year.
It is important to never accept the first rate offer that your existing lender sends to you in the mail prior to your renewal date. Simply signing the letter without any negotiation will unnecessarily cost you significantly over the term of your mortgage.
It would be my pleasure to have the lenders compete for your business at renewal time to ensure you receive the best mortgage for your specific needs. We find that over time things in our lives change and the product that was required at the time of purchase might not fit your current situation.
With products and rates changing on an ongoing basis, you can't possibly know what the best offering is for your unique situation without having me - a mortgage professional - do some investigating on your behalf.
It's my job to look at every rate and product change from each lender - including banks, trust companies and credit unions - every morning to ensure I find the best deals for my clients. Due to my company affiliation and the volume that we produce there are also products that are available to us that other brokers do not have.
Often times, your existing lender will send a renewal letter to their existing clients in the hopes that you will simply sign the renewal form and send it back. The rate quoted on this letter is usually much higher than we can get for you. The best course of action is to have us sit down prior to your renewal date or forward the lender's renewal offer to me before signing anything. That way, you can rest assure you are getting the best possible mortgage product and rate that suits both your current and future mortgage needs.