While most Canadians spend a lot of time, and expend a lot of effort, in shopping for an initial mortgage, the same is generally not the case when looking at mortgage term renewals.
Failing to properly evaluate mortgage options at renewal time costs Canadians thousands of dollars every year. Nearly 60% of borrowers simply accept the first renewal offer from their lender—often without comparing rates or exploring better options.
Don’t Settle at Renewal—Make Your Mortgage Work for You
Homeowners should never accept the first renewal offer from their existing lender without exploring other options. Automatically signing on for a market-rate renewal—without any negotiation—can end up costing you thousands more over the life of your mortgage.
It’s wise to start shopping for a new mortgage term four to six months before your current term expires. Unfortunately, many lenders send out renewal notices just weeks before the end of your term, leaving little time to secure a better deal elsewhere. That’s why it’s crucial to stay on top of your renewal timeline and be proactive in finding the most competitive rate.
Before your lender even contacts you, have a licensed mortgage professional explore the market on your behalf. You might be surprised by how much they can save you.
Your mortgage is likely one of your largest financial commitments—so finding the best possible rate and terms is essential. By shopping around at renewal time, you could save a significant amount over the lifetime of your loan.
Don’t be one of the 60% who simply sign and return their renewal letter. Let a licensed Dominion Lending Centres mortgage professional do the legwork and ensure lenders compete for your business.