Renewals and Transfers

To transfer your mortgage from one banking institution to another, there is no cost, no penalties, no appraisal fees and no legal work, as long as you are at the end of your mortgage term. Even with all of these benefits, mortgage renewals are one of the most neglected decisions made during a mortgage’s lifetime.

Most homeowners do not shop around and continue to stay with their existing mortgage lender since they believe it is so time consuming or difficult to explore their options. As well, they may believe that their current offer from their existing bank constitutes the best deal around. Many times this is not the case.

History and experience shows that the majority of banks offer renewing clients a 25% discount off posted rates. As well, negotiating a rate discount with the branch may prove to be a timely process and often does not lead to the lowest rate around.

If however, the client does manage to negotiate a better rate, it is often a maximum ceiling discount of 1%. This is the maximum amount the branch allows a mortgage representative to discount any mortgage product. Certain cases are provided for clients who have numerous investments held within the bank. For the majority of us, there are no exceptions made to this rule.

It is important to work with a mortgage broker who treats you with courtesy, privacy and respect. The best rates should be posted for all and every client is assured with the same dedication to finding the best mortgage solution for your needs.

The main benefit to dealing with a mortgage broker is that you are dealing with someone who focuses 100% of their energy and time on the mortgage market. This is a vital step when it comes to providing the rates and service that every client is entitled to. When your current mortgage term is complete, and/or your mortgage is getting close to renewal, it is wise to remember these 2 opportunities to save money:

1. Don’t wait for the Bank!
Make an appointment with your mortgage lending institution 3 to 4 months prior to the renewal date and discuss your options to see what kind of service they can provide for you.

2. Keep Asking!
Negotiate with your mortgage provider and be confident as to what their best rate on your renewal can be. Once you have had that appointment and conversation, call us and we’ll be sure to beat their best rate at no extra cost to you!

Download PDF